Asked by Elizabeth Gossum on Jul 29, 2024
Verified
A production possibilities frontier has a bowed shape if the opportunity cost is constant at all levels of output.
Opportunity Cost
The cost of forgoing the next best alternative when making a decision, reflecting the potential benefits one misses out on when choosing one option over another.
- Discern the catalysts and outcomes of modifications and contours in the production possibilities curve.
Verified Answer
MB
Manvee BatraJul 30, 2024
Final Answer :
False
Explanation :
A production possibilities frontier has a bowed-out shape when the opportunity cost increases as the production of one good increases, indicating increasing opportunity costs, not constant.
Learning Objectives
- Discern the catalysts and outcomes of modifications and contours in the production possibilities curve.