Because of increasing opportunity costs, the production possibility curve: a. is bowed out from (or concave to) the originb. can be either downward- or upward-slopingc. at first rises, then falls eventuallyd. is a straight downward-sloping line

(A) is bowed out from (or concave to) the origin

Explanation:

Production possibility curve is a curve that shows the maximum production of two goods in the economy produced using the available resources fully and efficiently. The curve shows the capabilities of the nation in production.

It even shows the basic economic problem of a country having limited resources, facing opportunity costs and scarcity in the economy.

Now, the shape of the production possibility curve represents the opportunity costs involved in the production of the two goods so that when the production possibility curve is bowed out from, i.e., concave, the opportunity costs increase along the curve and when the production possibility curve bowed in, i.e., convex, opportunity costs decrease.

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