Production Possibility Curves Day 4

The reason why the production possibility curve has a convex shape and not a concave shape is because of the law of increasing opportunity costs. For example if resource Z was the primary resource used to produce product A and resource Y was the primary resource used to produce product B; Z would not be as effective as Y for product B and Y would not be as effective as Z for product A. However, if the resources are allocated properly, production is maximized and efficient. Whereas, if resources were transferred there would be diminishing returns for every Z used for B and Y used for A. The only way to achieve a concave shape would be to completely switch the primary resource used, meaning A would be using Y primarily when Z is a much better choice.