Production possibilities frontiers are usually bowed outward. This is because Group of answer choices 1. it reflects the fact that the opportunity cost of producing a good decreases as more and more of that good is produced. 2. of the effects of technological change. 3. the more resources a society uses to produce one good, the fewer resources it has available to produce another 4. good. resources are specialized; that is, some are better at producing particular goods rather than other goods.

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Business

Peter Hebert

19 July, 11:57

Production possibilities frontiers are usually bowed outward. This is because Group of answer choices 1. it reflects the fact that the opportunity cost of producing a good decreases as more and more of that good is produced. 2. of the effects of technological change. 3. the more resources a society uses to produce one good, the fewer resources it has available to produce another 4. good. resources are specialized; that is, some are better at producing particular goods rather than other goods.

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Izayah Bishop · Answer 1

3. the more resources a society uses to produce one good, the fewer resources it has available to produce another

Explanation:

The production possibilities frontier (PPF) is a curve that shows the trade-offs that a person, firm, or country has to incurr when producing two goods.

As economic agents have limited resources, they can only produce a limited amount of one good over the other.

If more resources are devoted to the production of one good, for example, butter, then, less resources are left for the production of the other good, for example, guns.

With each additional unit of butter produced, more resources are spent, which means that less resources are available to produce guns.

In other words, the opportunity cost of producing butter increases as more butter is made, causing the PPF to bow outward.