A straight-line production possibilities curve takes this shape because
A) the opportunity cost of producing a good is constant.
B) the opportunity cost of producing more of a good is decreasing.
C) resources are better suited for producing one output than another.
D) resources are fixed.

Question

Quizplus · Accepted Answer

A straight-line production possibilities curve suggests that the opportunity cost of producing one good in terms of the other is constant. This means that the resources are equally efficient in producing both goods and the economy can choose to produce either good based on their relative demand or other factors.

A Straight-Line Production Possibilities Curve Takes This Shape Because