When inputs are equally productive in all activities, marginal opportunity costs are constant.

Question

Quizplus · Accepted Answer

When inputs are equally productive in all activities, the opportunity cost of producing one good in terms of the other is constant, as the same amount of resources can be used to produce either good without impacting the efficiency or productivity of the inputs. Therefore, marginal opportunity costs are constant.

When Inputs Are Equally Productive in All Activities, Marginal Opportunity