which of the following explains why a production possibilities curve is often represented as concave (bowed…

which of the following explains why a production possibilities curve is often represented as concave (bowed out) from the origin?\na the law of demand\nb the law of supply\nc constant returns to scale\nd decreasing opportunity cost\ne increasing opportunity cost

which of the following explains why a production possibilities curve is often represented as concave (bowed out) from the origin?\na the law of demand\nb the law of supply\nc constant returns to scale\nd decreasing opportunity cost\ne increasing opportunity cost

Answer

Brief Explanations:

The production - possibilities curve is concave due to the law of increasing opportunity cost. As more of one good is produced, the opportunity cost of producing an additional unit of that good rises. This is because resources are not equally suited to the production of all goods. The law of demand and supply, and constant returns to scale do not explain the concavity, and decreasing opportunity cost would result in a convex curve.

Answer:

E. Increasing opportunity cost