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Homework answers / question archive / Because of increasing MRS (marginal rate of substitution)
Because of increasing MRS (marginal rate of substitution).
As more unit of good 1 is produced,there will be a decrease in the production of good 2(This is the theory of MRS). Only when MRS/MOC is constant, will the ppc be a straight line. In an economy (usually) there will be some MRS when producing two goods because of scarcity.
