Production Possibilities Frontiers Are Typically Concave (Bowed Out)from the Origin

question 92

Multiple Choice

Production possibilities frontiers are typically concave (bowed out) from the origin because

• A) of the law of supply
• B) there is usually a one-for-one trade-off in resources used in production
• C) economies of scale enable firms to reduce the average costs of production as output rises
• D) the opportunity cost of a good rises as the quantity of the good produced increases
• E) resources are often left idle in the firm