Which of the following is true of a constant cost production-possibility curve?
A)A constant cost production possibilities curve is drawn as a positively sloped straight line.
B)Along a constant cost production possibilities curve, the opportunity cost of producing more of a good is constant.
C)When a country engages in free trade, the constant cost production-possibility curve shifts to the right.
D)A country with a constant cost production-possibility curve partially specializes in the production of goods when it engages in free trade with other nations.

Question

Quizplus · Accepted Answer

Along a constant cost production possibilities curve, the opportunity cost of producing more of a good is constant. This means that for each additional unit of a good produced, the same amount of the other good must be given up. The curve is typically bowed outward, indicating increasing opportunity costs as production of one good expands. Choices A, C, and D are not true statements about constant cost production-possibility curves.

Which of the Following Is True of a Constant Cost