If the PPF for two goods is a downward-sloping straight line,the resources used to produce those goods are equally well-suited to the production of both goods.

Question

Quizplus · Accepted Answer

If the PPF is a downward-sloping straight line, it means that the opportunity cost of producing one good in terms of the other remains constant. This implies that the resources used to produce those goods are equally well-suited to the production of both goods, as the production of one good does not require a greater sacrifice of resources that could have been used to produce the other good.

If the PPF for Two Goods Is a Downward-Sloping Straight