If the production possibilities curve is a straight line:
A)opportunity costs increase as output of either commodity is expanded.
B)resources are not equally substitutable between the production of the goods.
C)opportunity costs are negative.
D)as an increasing quantity of resources are shifted from one manufacturing process (good Y) to another (good X), there is no increase in opportunity cost.

Question

If the production possibilities curve is a straight line:
A)​opportunity costs increase as output of either commodity is expanded.
B)​resources are not equally substitutable between the production of the goods.
C)​opportunity costs are negative.
D)​as an increasing quantity of resources are shifted from one manufacturing process (good Y) to another (good X), there is no increase in opportunity cost.

Quizplus · Accepted Answer

When the production possibilities curve is a straight line, it indicates constant opportunity costs for producing one good over another as resources are shifted. This means that the resources are equally efficient in producing both goods, and there is no increase in opportunity cost when moving resources from the production of one good to another.

If the Production Possibilities Curve Is a Straight Line