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:

Public Sale

An auction or sale of goods or assets that is open to the general public and conducted by a legal or governmental authority.

Private Sale

is a transaction where goods, assets, or shares are sold directly from one party to another without public auction or market trading.

Incidental Damages

Expenses or costs that arise indirectly from a breach of contract or other wrongdoing, which may be recoverable under the law.

Breach

The violation or non-fulfillment of a legal obligation, contract, or agreement.