Why Is a Production Possibilities Frontier Bowed Out (Concave)

question 38

Multiple Choice

Why is a production possibilities frontier bowed out (concave) ?

• A) The bowed shape reflects constant opportunity cost.
• B) The bowed shape reflects decreasing opportunity cost.
• C) The bowed shape indicates that opportunity cost at first decreases at a decreasing rate, and then begins to decrease at an increasing rate.
• D) The bowed shape indicates that opportunity cost at first increases at a decreasing rate, and then begins to increase at an increasing rate.
• E) The bowed shape reflects increasing opportunity cost.

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Definitions:

Organizational Buying

The process by which businesses and institutions purchase products or services for use in the operations, production, or reselling.

Buying Situations

Various contexts or scenarios in which purchasing decisions are made, influenced by factors like need, urgency, availability, and personal preferences.

Straight Rebuy

A purchasing situation in business-to-business markets where a buyer reorders a product or service without seeking additional information or considering other suppliers.

Crate & Barrel

A retail company specializing in housewares, furniture, and home accessories, known for its modern and stylish product offerings.