While producing on the production possibilities frontier, if additional units of a good could be produced at a constant opportunity cost, the production possibilities frontier would be
A) a straight line.
B) positively sloped.
C) bowed outward.
D) bowed inward.

Question

Quizplus · Accepted Answer

A straight line indicates that the opportunity cost of producing additional units of a good is constant, which means resources are easily adaptable and can be easily shifted from one use to another without any loss in efficiency. This is also known as constant marginal opportunity cost.

While Producing on the Production Possibilities Frontier, If Additional Units