A medical clinic employs 10 workers.Each worker can produce a maximum of either 2 units of medical services or 5 units of administrative services a day.The production possibilities frontier of this firm shows

Question

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The production possibilities frontier (PPF) of this firm shows constant opportunity cost because each worker can switch between producing medical services and administrative services at a constant rate (2 units of medical services for 5 units of administrative services, or vice versa), indicating a straight-line PPF.

A Medical Clinic Employs 10 Workers