Use the following figure to answer the questions: Figure 1.6

-If the opportunity cost of producing cars was zero at all levels of production,the production possibilities curve would be best be represented by a
A)Vertical line.
B)45-degree line starting at the origin.
C)Horizontal line.
D) Circle.

Question

Use the following figure to answer the questions: Figure 1.6

-If the opportunity cost of producing cars was zero at all levels of production,the production possibilities curve would be best be represented by a
A)Vertical line. 
B)45-degree line starting at the origin. 
C)Horizontal line. 
D) Circle.

Quizplus · Accepted Answer

If the opportunity cost of producing cars was zero at all levels of production, the production possibilities curve would be best be represented by a vertical line. This is because the opportunity cost of producing cars is the amount of other goods that must be given up in order to produce one more car. If the opportunity cost of producing cars is zero, then no other goods must be given up in order to produce one more car. This means that the production possibilities curve will be a vertical line, because there is no trade-off between producing cars and producing other goods.

Use the Following Figure to Answer the Questions: Figure 1