Which of the following distinguishes a "straight-line" production possibilities curve from one that is "bowed out"?

Question

Quizplus · Accepted Answer

A straight-line production possibilities curve exhibits constant opportunity costs, whereas a bowed production possibilities curve exhibits increasing opportunity costs. This is because in a straight-line production possibility curve, resources are perfectly interchangeable and can be used to produce any combination of the two goods at a constant rate, whereas in a bowed production possibility curve, resources are not equally efficient in producing both goods, and as more of one good is produced, the opportunity cost of producing the other good increases.

Which of the Following Distinguishes a "Straight-Line" Production Possibilities Curve