Constant opportunity costs suggest that the relative cost of producing one product in terms of the other will remain the same no matter where a nation chooses to locate on its production-possibilities schedule.

Question

Quizplus · Accepted Answer

Constant opportunity costs mean that the ratio of resources used to produce one good compared to the other will remain constant no matter where a nation chooses to produce on its production-possibilities schedule. This implies that the relative cost of producing one product in terms of the other remains the same.

Constant Opportunity Costs Suggest That the Relative Cost of Producing