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Answer :
Final answer:
The answer is D. diseconomies of scale. When a product transformation curve is bowed outward, it indicates that the average cost per unit increases as the level of output and scale of production rises.
Explanation:
The answer to the question is D. diseconomies of scale.
When a product transformation curve is bowed outward, it indicates diseconomies of scale. Diseconomies of scale occur when the average cost per unit increases as the level of output and scale of production rises. This can happen when a firm or factory becomes too large to manage efficiently, resulting in high costs and disruptions in work and communication.
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