If the production possibility frontier is ________, then opportunity costs are constant as more of one good is produced.

Question

Quizplus · Accepted Answer

If the production possibility frontier is linear, this means that the opportunity cost of producing one good in terms of the other remains constant as more of one good is produced. This is because the resources used to produce both goods are perfectly substitutable and have the same marginal productivity. As a result, the production possibility frontier would be a straight line, indicating a constant tradeoff between the two goods.

If the Production Possibility Frontier Is ________, Then Opportunity Costs