How does the law of increasing opportunity cost affect the shape of the production possibility frontier?

Economics Production Possibility Frontier Questions



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How does the law of increasing opportunity cost affect the shape of the production possibility frontier?

The law of increasing opportunity cost affects the shape of the production possibility frontier by making it concave or bowed outwards. This means that as more of one good is produced, the opportunity cost of producing additional units of that good increases. As a result, the production possibility frontier becomes steeper, indicating the trade-off between producing different goods.