Ask Question
BusinessBusiness
12 February, 05:48

When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good a. increases as more of the good is produced. by. decreases as more of the good is produced. c. does not change as more of the good is produced. d. may increase, decrease, or not change as more of the good is produced.

+2
Answers (1)
  1. 12 February, 06:17
    0
    The correct answer is option a.

    Explanation:

    A production possibility frontier is generally bowed outward or is concave to the origin. This shape of the frontier shows the increasing opportunity cost. Because of the scarcity of resources we need to sacrifice the production of one good to increase the production of others. As we go on increasing production, the opportunity cost goes on increasing with each additional unit of a good.

    This is because the resources are specialized, they cannot be perfectly substituted for producing two goods. So as the production of a good increase, the opportunity cost increases as well.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good a. increases as ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5 per unit. Minor currently produces and sells 7,500 units at $6.00 each. This level represents 75% of its capacity. Production costs for these units are $4.
Answers (1)
In economics the value of what a producer or consumer is willing to give up in order to produce or buy something else is called a) A factor of production b) Productivity c) A trade-off d) An opportunity cost
Answers (1)
The buyer of a futures contract A. assumes the short position. B. may not sell the contract without the permission of the original seller. C. assumes the long position. D.
Answers (1)
A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years is the: A. Operating cycle of a business. B. Time period principle. C. Going-concern principle. D.
Answers (1)
The 'on my way button' should be clicked when you leave your current location (home, gym, etc.) to go to the walk. when should you tap the "start walk" button?
Answers (1)
New Questions in Business
How should you use operating costs when calculating incremental cash flows? Group of answer choices: A. Do not subtract operating costs, and then subtract taxes on operating income before operating costs. B. Subtract operating costs. C.
Answers (1)
The following selected data are from a recent statement of cash flows: Net cash flow from operating activities $ 35,000 Net cash flow used for investing activities (20,000) Net cash flow used for financing activities 60,000 Ending cash balance
Answers (1)
Gates Corporation reported the following information concerning its direct materials: Direct materials purchased (actual) $ 673,000 Standard cost of materials purchased $ 688,000 Standard price times actual amount of materials used $ 444,000 Actual
Answers (1)
how fiscal policy can be used to slow down an economy that is growing at a rate faster than what is sustainable in the long-term if the policy makers are concerned that such a high growth may create undesirably high rates of inflation in the future.
Answers (1)
The owner of a restaurant has recently hired a new manager who claims to have improved the workflow. the owner wants to know if indeed, the new workflow is more effective. he has some past data on customer waiting time during peak demand hours.
Answers (1)
Home » Business » When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good a. increases as more of the good is produced. by. decreases as more of the good is produced. c.
Sign Up Forgot Password?