When the production possibilities frontier is a straight line, then
Production occurs under conditions of:
A)increasing costs.
B)decreasing costs.
C)constant costs.
D)increasing, then decreasing, then constant costs.

Question

Quizplus · Accepted Answer

A straight line production possibilities frontier indicates constant costs of production. This means that resources can be used in any combination without an increase or decrease in the opportunity cost of producing one good versus another.

When the Production Possibilities Frontier Is a Straight Line, Then