1
Question
If opportunity costs are constant _________.
If opportunity costs are constant _________.
Open in App
Solution
The correct option is D PPC is a straight line
The slope of production possibility curve is marginal
opportunity cost which refers to the additional sacrifice that a firm makes
when they shift resources and technology from production of one commodity to
the other. Therefore, if marginal opportunity cost remains constant then PPC
will be a straight line owing to constant slope.
The slope of production possibility curve is marginal opportunity cost which refers to the additional sacrifice that a firm makes when they shift resources and technology from production of one commodity to the other. Therefore, if marginal opportunity cost remains constant then PPC will be a straight line owing to constant slope.
Suggest Corrections
0
Similar questions
View More
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
