PPC shows economy which uses two factor input, capital and labour. The amount of capital allocated to both X and Y are fixed.
Why does the PPC bowed outwards?
A. decreasing opp cost
B. Diminishing returns
C. Diseconomies of scale
D. Economies of scale

Question

PPC shows economy which uses two factor input, capital and labour. The amount of capital allocated to both X and Y are fixed.
Why does the PPC bowed outwards?
A. decreasing opp cost
B. Diminishing returns
C. Diseconomies of scale
D. Economies of scale

anonymous · Answer

i guess diseconomies of scale bcause ppc is bowed outward of increasing costs so doc means that costs rise...