The production possibility curve is bowed outward from the origin because of:

a. the law of increasing opportunity costs.
b. the finite nature of the resource base.
c. inefficiency.
d. improper output mix.
e. unemployment.

a

Economics

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The results of many empirical studies of short-run cost functions have shown that total costs conform to

A) a quadratic total cost function. B) a power cost function. C) a linear cost function. D) a cubic cost function.

Economics

If price of product A increases by 10%, and the quantity demanded for product B drops by 50%, then these two products are

A) substitutes. B) complements. C) normal goods. D) inferior goods.

Economics