The shape of the production possibility frontier is determined by the law of diminishing returns. So, the correct answer is B. law of diminishing returns.

Here's why:

The production possibility frontier (PPF) is a curve that illustrates the variations in the amounts that can be produced of two products if both depend upon the same finite resource for their manufacture. The PPF assumes that all inputs are used efficiently.

The law of diminishing returns states that in all productive processes, adding more of one factor of production, while holding all others constant, will at some point yield lower incremental per-unit returns. This concept is reflected in the concave shape of the production possibility frontier as it shows that with every additional unit of resource used in the production of one good, the production of the other good decreases, thus illustrating the tradeoff.

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The shape of the production possibility frontier is determined by the law of diminishing returns. So, the correct answer is B. law of diminishing returns.

Here's why:

The production possibility frontier (PPF) is a curve that illustrates the variations in the amounts that can be produced of two products if both depend upon the same finite resource for their manufacture. The PPF assumes that all inputs are used efficiently.

The law of diminishing returns states that in all productive processes, adding more of one factor of production, while holding all others constant, will at some point yield lower incremental per-unit returns. This concept is reflected in the concave shape of the production possibility frontier as it shows that with every additional unit of resource used in the production of one good, the production of the other good decreases, thus illustrating the tradeoff.

Knowee AI · Accepted Answer

The shape of the production possibility frontier is determined by the law of diminishing returns. So, the correct answer is B. law of diminishing returns.

Here's why:

The production possibility frontier (PPF) is a curve that illustrates the variations in the amounts that can be produced of two products if both depend upon the same finite resource for their manufacture. The PPF assumes that all inputs are used efficiently.

The law of diminishing returns states that in all productive processes, adding more of one factor of production, while holding all others constant, will at some point yield lower incremental per-unit returns. This concept is reflected in the concave shape of the production possibility frontier as it shows that with every additional unit of resource used in the production of one good, the production of the other good decreases, thus illustrating the tradeoff.

The shape of the production possibility frontier is determined by the_________ A. law of returns to scale B. law of diminishing returns C. factors of productions D. technology

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