If the production possibilities curve were a straight line sloping down from left to right, this would suggest that:
A) more of both goods could be produced moving along the curve.
B) the two products must have the same price.
C) no factor of production has any particular comparative advantage over other resources.
D) the utility of the two goods must be equal to consumers.

Question

Quizplus · Accepted Answer

A straight line production possibility curve indicates that factors of production are easily adaptable and there is no comparative advantage of any factor, resulting in a constant opportunity cost for either good.

If the Production Possibilities Curve Were a Straight Line Sloping