Production Possibilities Curve

The Production Possibility Curve slopes downwards because of a society's limited amount of resources. A society is trying to produce enough goods while still trying to achieve the maximum amount of profit. The graph has different points because each good has a different amount being produced. Just because one has more doesn't make it better it just states that the society has more resources to produce that certain good. The law of increasing opportunity costs is the transferring resources from producing one product to another. This results in a small increase of the new produce each time it is produced. This gives the graph its convex shape.