?
The shape of PPC is concave due to
Answer & Solution
Correct Answer:
Option
B
The shape of PPC is concave due to rising opportunity cost between two goods. Most of the PPF curves are concave due to the inadaptability of the resources. The law of increasing opportunity cost states: as the production of one good rises, the opportunity cost of producing that good increases.
Join the Discussion
Login to post a comment or share your explanation.
Login