Question

While producing on the production possibilities frontier, if additional units of a good could be produced at a constant opportunity cost, the production possibilities frontier would be

Answer 1

a straight line

Step-by-step explanation:

The Production possibilities frontier is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.

As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

If opportunity cost was constant, there would be no trade off between goods, so the curve would be a straight line