PPF - Increasing Marginal Opportunity Costs and Allocative Efficiency

2. Introductory Economic Models / PPF - Increasing Marginal Opportunity Costs and Allocative Efficiency / Problema 5

Problema 5

What does the outward bow shape of a Production Possibilities Frontier (PPF) indicate?

Allocative efficiency

Increasing marginal opportunity costs

Constant opportunity costs

Decreasing opportunity costs