With the assumption that the marginal product of labor is constant and
That labor is the only variable resource, the slope of the PPF is:
A)positive and increasing.
B)negative and decreasing.
C)negative and constant.
D)unrelated to the issue at hand.

Question

Quizplus · Accepted Answer

With the assumption that the marginal product of labor is constant, the slope of the PPF will be negative and constant, indicating that the opportunity cost of producing one good is constant and proportional to the amount of the other good that is given up. This is because labor is the only variable resource and thus any additional units of labor will lead to the same increase in output, resulting in a constant slope.

With the Assumption That the Marginal Product of Labor Is