To what can concave shape of Production Possibilities Frontier be due? Select one: a. Law of diminishing returns. b. Existence of an opportunity cost. c. Scarcity. d. Efficiency in production. e. Inflation of a market.

To what can concave shape of Production Possibilities Frontier be due? Select one: a. Law of diminishing returns. b. Existence of an opportunity cost. c. Scarcity. d. Efficiency in production. e. Inflation of a market.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter3: Scarcity, Trade-offs, And Production Possibilities

Section: Chapter Questions

Problem 6P

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Concept explainers

Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.

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To what can concave shape of Production Possibilities Frontier be due?
Select one:
a. Law of diminishing returns.
b. Existence of an opportunity cost.
c. Scarcity.
d. Efficiency in production.
e. Inflation of a market.

Definition Definition Curve that represents the various combinations of production possibilities of two commodities when resources or factors of production are given.

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