A Production Possibilities Curve That Is "Bowed Out" or Concave

question 125

Multiple Choice

A production possibilities curve that is "bowed out" or concave to the origin:

• A)​illustrates a tradeoff in which the opportunity cost of a good increases with the level of its production.
• B)​illustrates a tradeoff in which the opportunity cost of a good decreases with the level of its production.
• C)​illustrates a tradeoff in which the opportunity cost of a good is constant at all levels of production.
• D)​demonstrates the fallacy of composition.

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Definitions:

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