If additional units of any good could be produced at a constant opportunity cost, the production possibilities frontier would be
A)bowed inward.
B)bowed outward.
C)positively sloped.
D)horizontal.
E)linear and negatively sloped.

Question

Quizplus · Accepted Answer

When the production possibilities frontier is linear and negatively sloped, it means that the opportunity cost of producing more of one good increases as the society moves along the frontier to produce more of that good. This is known as the law of increasing opportunity cost. Therefore, additional units of any good could be produced at a constant opportunity cost only if there is no trade-off between producing one good and the other, which is not represented by a linear and negatively sloped production possibilities frontier.

If Additional Units of Any Good Could Be Produced at a Constant