The production possibilities frontier illustrates opportunity cost by showing what must be given up to produce more of another good or service. Moving along the frontier means increasing production of one output while reducing production of another because resources are limited. In a simple example, the trade-off may remain constant, producing a straight-line frontier. In most real-world situations, however, opportunity costs increase because workers, equipment, and other resources are not equally suited to every task. That increasing trade-off produces the bowed shape commonly associated with the production possibilities frontier.
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