Production possibility curve is always concave because ?
Correct answer: C. In reflects the law of increasing opportunity cost
- A. The curve gets steeper as we move downward
- B. The marginal benefit decreases as more of a good is consumed
- C. In reflects the law of increasing opportunity cost
- D. Resources are scarce
Explanation
A concave production possibility curve reflects increasing opportunity cost: as production shifts toward one good, progressively larger amounts of the other good are sacrificed. The word “always” is a simplification because some frontiers can be linear, but option c gives the intended reason.
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