If the production possibilities frontier between two goods were a straight line,then the opportunity cost of one good in terms of another would be
A)zero.
B)constant.
C)decreasing.
D)increasing.
E)either constant,increasing or decreasing,but more information is needed to determine which.

Question

Quizplus · Accepted Answer

If the production possibilities frontier is a straight line, then the opportunity cost of producing one good in terms of the other is constant. This is because the resources used to produce each good are perfectly substitutable for each other, meaning that increasing the production of one good requires a constant decrease in the production of the other good. Therefore, the opportunity cost remains constant along the PPF, resulting in a straight line.

If the Production Possibilities Frontier Between Two Goods Were a Straight