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Which production possibilities frontier (PPF) reflects increasing opportunity costs?

User Xaviera
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1 Answer

3 votes

Answer:

bowed-out shape

Step-by-step explanation:

Each type of good requires a different set of production resource. When the opportunity cost increases the production possibility frontiers tends to have a bowed-out shape. The reason for bowed-down shape is, goods need different production process and tools, that is why the firms have to choose which goods they want to produce and which are not feasible.

User Lokiare
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