Whatever quantity of croissants Stephen bakes, the quantity of kolaches that he gives up baking is identical. What is the shape of Stephen's production possibilities frontier (PPF)?
A) bowed in
B) bowed out
C) linear
D) horizontal

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) is linear because the opportunity cost of baking croissants in terms of kolaches is constant, indicating a straight-line relationship between the production of the two goods.

Whatever Quantity of Croissants Stephen Bakes, the Quantity of Kolaches