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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
13.From a point on the PPF, rearranging production and producing more of all goods is possible. 14.From a point within the PPF, rearranging produc-tion and producing more of all goods is possible. 15.Production efficiency requires producing at a point on the PPF. 16.Along a bowed-out PPF, as more of a good is pro-