If the production possibilities curve is a straight line, then
A) the opportunity cost of producing one good is zero.
B) the law of increasing opportunity costs does not apply.
C) the society can produce more of both goods simultaneously.
D) the society is capable of producing only one of the goods and not the other.

Question

Quizplus · Accepted Answer

If the production possibilities curve is a straight line, it means that the resources used for production are equally efficient in producing both goods. Therefore, the law of increasing opportunity costs does not apply as there is no tradeoff between producing one good and the other.

If the Production Possibilities Curve Is a Straight Line, Then