If the production possibility frontier is a straight line:
A)opportunity costs are constant.
B)firms face increasing costs.
C)firms face decreasing costs.
D)there is no trade-off between the two goods represented.

Question

Quizplus · Accepted Answer

A straight line PPF indicates that the opportunity cost of producing one good in terms of the other remains constant, which means that resources are equally efficient in producing both goods.

If the Production Possibility Frontier Is a Straight Line