Unlike in the case of constant costs, increasing-cost conditions correspond to a ________________ production possibilities frontier (PPF). This indicates that the marginal rate of transformation __________ in response to movements along the PPF.
The downwards pointing of the slope of the production curve is an implication of scarcity and this shape is a result of the allocation of the resources that are based on the comparative advantage and such as an allocation implies the opportunity costs with the holders.
The rate of the transformation can be explained as many units of goods have been produced in order to make an extra unit of a good and it varies in the movement along the PPF curve.
