Summary: The Production Possibilities Curves above are concave to the origin which indicates the Law of Increasing Costs. The only way to produce beyond the curve is if economic growth occurs in the future or if the economy specializes and trades with another economy (Comparative Advantage). To simplify things, the PPC will be straight (constant cost) on the test to determine if trade should occur between two countries.
Disclaimers: MrMedico.info (2006-2018) is independently operated and is not directly affiliated with PortNet, the official website of the Port Washington Union Free School District. Students in Mr. Medico's classes are always offered free content for any Mr. Medico product advertised on this site. AP® is a trademark registered by the College Board, which was not involved in the production of, and does not endorse, this product.