Suppose Austria produces only scooters and bikes. The resources that are used in the production of these two goods are not specialized$$that is$,$ the same set of resources is equally effective at producing both bikes and scooters.

The shape of Austria's production possibilities frontier $($PPF$)$ should reflect the fact that as Austria produces more bikes and fewer scooters, the opportunity cost of producing each additional bikeincreases $.$

The following graphs show two possible PPFs for Austria's economy: a straight$-$line PPF $($PPF$1$

$)$ and a bowed$-$out PPF $($PPF$2$

$).$