If the opportunity cost of producing either of two goods in question is constant,the production possibility frontier is:

A) linear.
B) concave to the origin.
C) convex to the origin.
D) upward-sloping.

Question

If the opportunity cost of producing either of two goods in question is constant,the production possibility frontier is:A) linear.B) concave to the origin.C) convex to the origin.D) upward-sloping.

Taran Saini · Accepted Answer

Final Answer : A, Explanation :  The production possibility frontier (PPF) is a graphical representation of the trade-offs between two goods that a society can produce using its limited resources. If the opportunity cost of producing either of the two goods in question is constant, it means that the resources used to produce one good can be easily switched to produce the other good. In this case, the PPF will be a straight line (linear) because the trade-offs between the two goods are constant at all levels of production. Therefore, option A) is the correct answer.

If the opportunity cost of producing either of two goods in question is constant,the production possibility frontier is:

A) linear.
B) concave to the origin.
C) convex to the origin.
D) upward-sloping.

Definitions

Learning Objectives

Learning Objectives

Related questions