Constant opportunity costs suggest that the relative cost of producing one product in terms of the other will remain the same no matter where a nation chooses to locate on its production-possibilities frontier.

Question

Quizplus · Accepted Answer

Constant opportunity costs mean that the trade-off between producing one product over the other remains the same, regardless of where the nation is located on its production-possibilities frontier. Therefore, the relative cost of producing one product in terms of the other remains constant.

Constant Opportunity Costs Suggest That the Relative Cost of Producing