Asked by
Ravindra Muramkar
on Oct 26, 2024
Verified
If the production possibility frontier is a straight line:
A) opportunity costs are constant.
B) firms face increasing costs.
C) firms face decreasing costs.
D) there is no trade-off between the two goods represented.
Straight Line
The shortest distance between any two points, or a line with a constant slope, in geometric terms.
Opportunity Costs
Opportunity costs represent the benefits an individual, investor, or business misses out on when choosing one alternative over another.
- Understand the interpretation of the Production Possibility Frontier (PPF) and its consequences for opportunity cost as well as economic trade-offs.
Verified Answer
JN
Learning Objectives
- Understand the interpretation of the Production Possibility Frontier (PPF) and its consequences for opportunity cost as well as economic trade-offs.
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