Why Is the Production Possibilities Frontier Usually a Bow-Shaped Curve

question 85

Multiple Choice

Why is the production possibilities frontier usually a bow-shaped curve instead of a straight line?  

• A) because it is easier to illustrate the concepts of scarcity and prices with a bow-shaped curve than it is with a straight line 
• B) because early economists began drawing them in this way and the convention has continued throughout the years 
• C) because output eventually reaches a maximum and then declines 
• D) because resources are NOT perfectly adaptable to the production of all goods

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