Shape Of The Curve

The law of increasing opportunity costs is reflected in the shape of the production possibilities curve: The curve is bowed out from the origin of the graph. Figure 2-1 shows that when the economy moves from A to E, successively larger amounts of robots (1, 2, , and 4) are given up to acquire equal increments of pizza (1, 1, 1, and 1). This is shown in the slope of the production possibilities curve, which becomes steeper as we move from A to E. A curve that gets steeper as we move down it is "concave to the origin."

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