-Refer to Figure 15.1. The solid lines are production possibilities curves; the dashed lines are consumption possibilities curves. The data contained in the production possibilities curves are based on the assumption of:

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The production possibilities curves represented by solid lines in a diagram typically illustrate the maximum output combinations of two goods that can be produced with a given set of resources and technology. When these curves are straight lines (as opposed to bowed out), it indicates constant opportunity costs for producing one good over another. This means that the resources are equally efficient in producing either good, which is the assumption of constant costs.