Production possibilities frontier as a bowed curve ?

Question

Economists typically depict the production possibilities frontier as a bowed curve rather than as a straight line in order to show that:

A. The opportunity cost of producing a good rises as more is produced

B. Opportunity cost is always present

C. The opportunity cost of producing a good decline as more is produced

D. Resourses used in production of one good cannot be used in production of another

Answer 1

D. Consider it this way.

You have two ovens and two stove top pans and can make bread and pancakes. Now the Ovens are more suited to making bread and the pans to pancakes. But if you were to have a very high price of bread then you could switch your pans to producing bread though they would be much less efficient in their production of that bread. The curve is bowed because resources are more efficient in some production and less efficient in others.

Answer 2

A. The opportunity cost of producing a good rises as more is produced

It's question #5 here (note that letters are mixed - so read answer rather than choosing letter-based options):

http://www.econ.iastate.edu/classes/econ...