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c) The PPF is bowed outward due to the law of increasing opportunity costs. Imagine you are producing at point A in the graph of part a). There you produce only grapes using all of your land. Now you want to consider raising 200 llamas (which means moving to point B). To
What shape does a PPF take if it displays increasing opportunity costs? What about if there are constant opportunity costs? Which shape is most common in production situations? Why? The shape that a PPF takes if it displays increasing opportunity costs is a curved shape. If there are constant opportunity costs, it is a linear graph. The most common is the curved graph because you have to factor in all the other variables such as labor, human needs, inconveniences â basically all the factors that will not be able to be accounted for on a linear graph.