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Basic Question 12 of 29
To graphically demonstrate the principle of increasing marginal opportunity cost, the production possibility curve must be ______.
B. bowed out
C. bowed in
A. straight
B. bowed out
C. bowed in
User Contributed Comments 9
| User | Comment |
|---|---|
| vmt2002 | Didn't know what bowed in/out meant, maybe could have used convex/concave? |
| azramirza | Does bowed in means MC curve? |
| boddunah | bowed in /bowed out did not help . |
| boddunah | getting answer right with bow in / bow out has a binomial probability of 0.5.. added quants for fun. |
| bundy | Bowed out means away from the horizontal axis...which is the Marginal cost curve...which follows the principle of increasing marginal opp cost |
| Bududeen | bowed out means the curve is shaped away from the origin i.e.concave and and bowed in means shaped towards the origin ie convex. not to the horizontal nor the vertical axis. |
| schweitzdm | Use google images for "bowed out concave" and "concave vs convex" for graphic examples. |
| fangluez | Hate the wording of this question. Can we just stick to concave/convex? |
| Huricane74 | Production Possibilities Curve https://www.youtube.com/watch?v=83m0_pCky50 |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition
CFA® 2024 Level I Curriculum, Volume 1, Module 1.