A production possibilities curve that is a straight line represents the case of
A)constant costs.
B)increasing costs.
C)decreasing costs.
D)constant opportunity costs but increasing real costs.
E)constant opportunity costs but decreasing real costs.

Question

Quizplus · Accepted Answer

A straight line represents a constant rate of transformation between the two goods, which implies constant opportunity costs and constant costs.

A Production Possibilities Curve That Is a Straight Line Represents