If the production possibilities frontier were a straight line,
A)the Law of Increasing Cost would still apply.
B)the opportunity cost of producing one good would decrease as more of another good is produced.
C)the opportunity cost of producing one good would increase as more of another good is produced.
D)the opportunity cost of producing one good would remain the same as more of another good is produced.

Question

Quizplus · Accepted Answer

When the production possibilities frontier is a straight line, it indicates that the opportunity cost of producing one good remains constant as more of another good is produced. This is because the resources are perfectly interchangeable between the two goods, and there is no specialization or increasing marginal cost involved. Therefore, the answer is D.

If the Production Possibilities Frontier Were a Straight Line