In order for the production possibilities frontier to be a straight line, production must exhibit:
A) increasing costs.
B) decreasing costs.
C) constant costs.
D) increasing, then decreasing, then constant costs.

Question

Quizplus · Accepted Answer

When production exhibits constant costs, it means that the opportunity cost of producing one good does not change as more of it is produced. This results in a straight line production possibilities frontier.

In Order for the Production Possibilities Frontier to Be a Straight