If the opportunity cost of producing more of one good remains the same as more of that good is produced, then the production method is inefficient.

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Quizplus · Accepted Answer

If the opportunity cost of producing more of one good remains the same as more of that good is produced, it is a characteristic of a production method with constant opportunity cost. This may be the case when resources used to produce the goods are homogenous or easily interchangeable, and the production possibility frontier is a straight line. This method is not necessarily inefficient, but it may not be optimal in terms of resource allocation and output possibilities.

If the Opportunity Cost of Producing More of One Good