why-does-the-ppf-graph-bow-outward-as-more-of-one-good-is-produced

Question

Why does the PPF graph bow outward as more of one good is produced?

Accepted Answer

Resources are not equally efficient in producing both goods, leading to increasing opportunity costs.

Answer

The economy is experiencing allocative efficiency.

Answer

There is a constant opportunity cost between the two goods.

Answer

Resources are perfectly adaptable for the production of both goods.