The conversation between human and AI assistant.
Under what circumstances would the production possible curve bowed in towards the origin?
Can you give me another example of a situation that would lead to a bowed production possibility curve?
Another example is when there are increasing returns to scale for one good and decreasing returns to scale for the other good. This means that as more of one good is produced, it becomes easier and more efficient to produce additional units of that good, while it becomes increasingly difficult and less efficient to produce additional units of the other good. This can occur if, for example, a factory has a limited amount of labor and machinery but can increase its production efficiency by producing more of one good rather than dividing its resources equally among multiple goods.