Question

If the slope of PPC remains constant (or does not change) with an increase in the production of Good-X (on horizontal axis) at the cost of Good-Y (on vertical axis), what is the shape of PPC? Draw the PPC.

Answer 1

PPC in this case will be a downward sloping straight line touches X-axis and Y-axis. It happens when marginal opportunity cost (or marginal rate of transformation) is constant.