If production involves constant opportunity cost, the production possibilities curve
A)is "bowed inward."
B)is a straight line.
C)is "bowed outward."
D)is a wavy line.
E)has an unpredictable shape.

Question

If production involves constant opportunity cost, the production possibilities curve
A)is "bowed inward." 
B)is a straight line.
C)is "bowed outward." 
D)is a wavy line.
E)has an unpredictable shape.

Quizplus · Accepted Answer

The production possibilities curve is a straight line when production involves constant opportunity cost. This is because the opportunity cost of producing one good in terms of another good is constant.

If Production Involves Constant Opportunity Cost, the Production Possibilities Curve