If the marginal (additional) opportunity cost is a constant then the PPC would be ____________.

convex

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a straight line

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backward bending

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concave

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Solution

The correct option is A a straight line
The slope of production possibility curve is marginal opportunity cost which refers to the additional sacrifice that needs to be made when resources and technology are shifted 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.

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Explain the concept of marginal opportunity cost using a numerical example.

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