In what way does the notion of comparative advantage help to

In what way does the notion of comparative advantage help to explain that production possibility curves are bowed outward (the principle of increasing opportunity cost)? Explain your answer in the context of the tradeoff between guns and butter.

Solution

The comparative advantage involves the entity with lower opportunity cost must produce the product thus increasin the total output of the two goods this way allocating production of goods on the basis of opportunity cost leads to higher overall output. This increased output is shown by an outward bowed PPF.