The conversation between human and AI assistant.
Under what circumstances would the production possibility curve be bowed in towards the original and are these circumstances likely?
Are these circumstances likely to happen frequently in real-life scenarios?
It depends on the industry and the specific conditions of production. For example, in high-tech industries, there may be significant economies of scale, resulting in increasing returns to scale. However, in many other industries, the opposite may be true, and the production possibility curve may be bowed outwards due to increasing opportunity cost.