Question

Why is a production possibilities curve downward sloping? explain?

Answer 1

Scarcity implies that a production possibilities curve is downward sloping; the law of increasing opportunity cost implies that it will be bowed out, or concave, in shape. ... Notice the curve still has a bowed-out shape; it still has a negative slope.

Answer 2

Answer:

slope of the production possibilities curve is an implication of scarcity. The bowed-out shape of the production possibilities curve results from allocating resources based on comparative advantage.