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c) The PPF is bowed outward due to the law of increasing opportunity costs. Imagine you are producing at point A in the graph of part a). There you produce only grapes using all of your land. Now you want to consider raising 200 llamas (which means moving to point B). To
A: A bowed production possibility curve occurs when the opportunity cost of a good increases as more of the item is produced. The production possibility frontier (PPF) or production possibility curve occurs when the economy is the most efficient at producing goods and services and allocating resources in the best way possible.