When you move from one point to another on the PPF and the opportunity cost of producing one good in terms of the other good does not change,then the PPF:

Question

Quizplus · Accepted Answer

When the opportunity cost of producing one good in terms of the other good does not change, it means that the resources used in producing both goods are perfectly interchangeable. This condition is met when the PPF is a straight line, which reflects a constant slope or ratio of tradeoff between the two goods. If the PPF were bowed out, the opportunity cost of producing one good would increase as more of it is produced, indicating that resources are not equally efficient in the production of both goods, while if it were bowed in, the opportunity cost of producing one good would decrease as more of it is produced, suggesting that resources are specialized in the production of one good. Therefore, the straight PPF is the only possibility when the opportunity cost of producing one good in terms of the other good remains constant.

When You Move from One Point to Another on the PPF