HELP PLEASE IT IS URGENT!!
Why does the PPF bow outward?
a) Because, while costs of sacrificed
production may remain constant, there
are diminishing returns as more
resources that are freed-up may be
less productive in the second
industry.
b) Because as more of one good is
produced, costs of sacrificed
production may increase as resources
better suited to production of the
sacrificed good are freed-up to
produce the other product.
c) Neither of the above.
d) Both of the above.
