Table 3-16
The following table contains some production possibilities for an economy for a given month.
-Refer to Table 3-16. If the production possibilities frontier is a straight line, then "?" must be
A)200.
B)300.
C)400.
D)500.

Question

Table 3-16
The following table contains some production possibilities for an economy for a given month. 
-Refer to Table 3-16. If the production possibilities frontier is a straight line, then "?" must be
A)200. 
B)300. 
C)400. 
D)500.

Quizplus · Accepted Answer

If the production possibilities frontier is a straight line, it indicates constant opportunity costs. Therefore, the value of "?" must be 400 to maintain a constant rate of trade-off between the two goods.

Table 3-16 The Following Table Contains Some Production Possibilities for an Economy