Unit 1, Question 5- Law of Increasing Opportunity Cost

The video tutorial explains the difference between bowed out and straight line production possibilities curves. It uses examples of cars and pizza to illustrate increasing opportunity costs, where resources are not easily adaptable, leading to a bowed out curve. Conversely, it uses cars and trucks to demonstrate constant opportunity costs, where resources are easily adaptable, resulting in a straight line curve.

What happens to the opportunity cost as you produce more of anything according to the text?

Describe the characteristics of a constant opportunity cost production possibilities curve.