If a production possibility frontier is a straight line,it tells us that the opportunity cost of producing one more unit of good X is:
A)an increasing amount of good Y.
B)a decreasing amount of good Y.
C)equal to the inverse of the amount of good Y.
D)a constant amount of good Y.

Question

Quizplus · Accepted Answer

If the production possibility frontier is a straight line, the opportunity cost of producing one more unit of good X remains constant, meaning that the same amount of good Y must be given up to produce each additional unit of good X. This is why the answer is D, a constant amount of good Y.

If a Production Possibility Frontier Is a Straight Line,it Tells