In the Two-Sector Specific-Factors Model, Diminishing Returns to Labor Implies

Multiple Choice

In the two-sector specific-factors model, diminishing returns to labor implies:

A) that the country's production possibilities frontier is linear (a straight line) .
B) that the country's production possibilities frontier is concave to the origin (bowed out from the origin) .
C) that the country's production possibilities frontier is convex from the origin (bowed in toward the origin) .
D) that the country's production possibilities frontier may be either concave to or convex from the origin.