Consider a production possibilities frontier (PPF) that is concave (bowed outward from the origin). Such a PPF displays increasing opportunity costs, meaning that the cost of producing additional units of both goods rises. What is the reason for increasing opportunity costs?

A. Market forces do not lead to equality between price and opportunity cost.
B. Management is disorganized and production is inefficient.
C. Some resources and skills cannot easily be adapted from their current uses to alternative uses.
D. As more of a good is produced, the inputs used to produce that good will increase in price.

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Joshua Stredder
Joshua StredderLv10
28 Sep 2019
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