As an economy moves onwards its production possibilities curve in the direction of producing more of a particular good, the opportunity cost of additional units of that good will increase.
Production possibilities curve(PPC) refers to the model, which is used to show the balance associated with allocation of the resources between the production of two goods.
A production possibilities curve generally shows the combinations of two goods that an economy or an organization produced.
Basically, PPC illustrates the different concepts of opportunity cost, scarcity, efficiency, inefficiency, economic growth etc.
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