Navigation » List of Schools, Subjects, and Courses » Econ 001 – Microeconomics Principles » Discussions » Understanding the PPF » Understanding the PPF Sample Answers
We are showing you only the excerpt of our answer. If you need help with the complete answer email us at 
Understanding the PPF
Why is the production possibility frontier (curve) concave in shape (bows outward)?
Understanding the PPF Answer
The production possibility frontier concave bows outward because of the increasing opportunity costs. The opportunity cost is the costs foregone in choosing the best alternative available. It is increasing because as we opt to get additional unit of a specific good, we must give up more and more units of another good because of the limited resources.
This question is taken from Econ 001 – Microeconomics Principles » Sumer 2021 » Discussions