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When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good

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The production possibilities frontier is bowed outward, this means that the opportunity cost of producing more units of a good increases.

What is the production possibilities frontier?

The Production possibilities frontier is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.

The PPF is typically bowed outward. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

For more information about the production possibility frontier, please check: https://brainly.com/question/25774783

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