The conversation between human and AI assistant.
Under what circumstances would the production possible curve bowed in towards the origin?
Can you give me an example of this?
Sure. Let's say a country can produce two goods: guns and butter. At the beginning, the country is producing mostly butter, so it can increase its output of guns without giving up much butter. However, as it produces more and more guns, it must give up increasing amounts of butter, causing the curve to bow inwards.