If production involves constant opportunity cost, the production possibilities frontier
A)is "bowed inward."
B)is a straight line.
C)is "bowed outward."
D)is a wavy line.
E)has an unpredictable shape.

Question

Quizplus · Accepted Answer

When production involves constant opportunity costs, the production possibilities frontier (PPF) is a straight line. This indicates that the opportunity cost of producing one good in terms of another remains constant as production shifts between the two goods.

If Production Involves Constant Opportunity Cost, the Production Possibilities Frontier