Which of the following statements best describes the given production possibilities curve?
A) The market price of butter must be higher than the market price for guns.
B) The market price of guns must be higher than the market price for butter.
C) It is more profitable for Becky to produce guns than butter.
D) It is more profitable for Becky to produce butter than guns.
E) The opportunity cost for one additional gun is always constant.

Question

Quizplus · Accepted Answer

The production possibilities curve (PPC) typically illustrates the trade-offs between two goods. If the opportunity cost for one additional gun is always constant, it means the PPC is a straight line, indicating constant opportunity costs.

Which of the Following Statements Best Describes the Given Production