Principles of Microeconomics / Unit 1 MIC 0024 short lesson, about 20 seconds
Why the Frontier Bows Outward
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The idea
The frontier bows outward because resources are not equally suited to every use, so each extra unit of one good costs more of the other than the last.
In practice
The curve is flat near one end and steep near the other.
Where people slip
That is the law of increasing opportunity cost, and it is what makes the frontier curve where a budget constraint stays straight.
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