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) bowed outward.
B) bowed inward.
C) positively sloped.
D) a straight line.

Question

Quizplus · Accepted Answer

A production possibilities frontier (PPF) that is a straight line indicates that additional units of a good can be produced at a constant opportunity cost. This contrasts with a PPF that is bowed outward, which would indicate increasing opportunity costs as production shifts between two goods.

While Producing on the Production Possibilities Frontier, If Additional Units