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Agriculture Economics QUESTION #11881
Question 1
A bowed-out (concave to the origin) PPF reflects:
  • Constant opportunity costs
  • Increasing opportunity costs as more of one good is produced✔️
  • Decreasing opportunity costs
  • Perfect substitutability between the two outputs
Correct Answer Explanation
The typical bowed-out PPF shape reflects rising opportunity cost: producing more of one good requires giving up increasing amounts of the other.