If additional units of any good can be produced at a constant opportunity cost,the production possibilities frontier is
A)bowed inward and negatively sloped.
B)bowed outward and negatively sloped.
C)positively sloped and linear.
D)horizontal.
E)linear and negatively sloped.

Question

Quizplus · Accepted Answer

If additional units of any good can be produced at a constant opportunity cost, then the production possibilities frontier (PPF) will be linear and negatively sloped. This means that the opportunity cost of producing one good is constant, resulting in a straight line PPF. The negative slope indicates that producing more of one good requires giving up some amount of the other good, which is the opportunity cost. Therefore, option E is the correct choice.

If Additional Units of Any Good Can Be Produced at a Constant