The opportunity cost of a good is always constant if the production possibility frontier is:
A)a downward-sloping straight line.
B)concave to the origin.
C)convex to the origin.
D)negatively sloped.

Question

Quizplus · Accepted Answer

When the production possibility frontier is a downward-sloping straight line, it means that the opportunity cost of producing one good in terms of the other is constant. This is because the resources used to produce the two goods are equally efficient in producing both goods, and therefore, a tradeoff between the two goods is constant.

The Opportunity Cost of a Good Is Always Constant If