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In a production possibilities frontier that is bowed outward, the opportunity cost of one good in terms of the other increases as more of each good is produced.
The opportunity cost of one good in terms of the other depends on how much of each good is being produced when a production possibilities frontier is bowed outward. This means that as an economy produces more of one good, the opportunity cost of producing additional units of that good increases, leading to a curved outward production possibilities frontier.
In a bowed outward production possibilities frontier, the law of increasing opportunity cost applies, indicating that producing more of one good requires giving up increasing amounts of the other good. For example, as a country focuses more resources on producing cars, the opportunity cost of producing additional cars increases in terms of the production of other goods like computers or healthcare services.
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