There are two explanations of constant opportunity costs: (1) factors of production are imperfect substitutes for each other; (2) all units of a given factor have different qualities.

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Constant opportunity costs occur when factors of production are perfectly substitutable for each other, not when they are imperfect substitutes or have different qualities. This scenario typically results in a straight-line production possibility frontier, indicating that the opportunity cost of producing one good over another remains constant.

There Are Two Explanations of Constant Opportunity Costs: (1) Factors