Which of the following can explain the concave shape of the production possibility curve?
مندرجہ ذیل میں سے کون سی چیز پیداواری امکانات کی منحنی کی مقعر شکل کی وضاحت کرتی ہے؟
- Increasing and then decreasing opportunity costs
- Increasing opportunity cost
- Decreasing opportunity cost
- None of these
Explanation
- The Production Possibility Curve (PPC) shows different combinations of two goods an economy can produce.
- Its concave shape shows that opportunity cost increases as production shifts from one good to another.
- This happens because resources are not equally efficient in all uses.
- As more of one good is produced, more units of the other good must be sacrificed.
- This is a key concept in economics called increasing opportunity cost.
Last verified on 23-04-2026
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