If a production possibilities frontier appears as a downward sloping straight line, which of the following occurs?
A) increasing opportunity cost
B) decreasing opportunity cost
C) constant opportunity cost
D) negative opportunity cost

Question

Quizplus · Accepted Answer

A straight-line production possibilities frontier indicates that the opportunity cost remains constant as more of one good is produced. This means that resources are perfectly adaptable between the production of two goods.

If a Production Possibilities Frontier Appears as a Downward Sloping