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Question

PPC is a straight line in case of


A

rising marginal opportunity cost

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B

falling marginial opportunity cost

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C

constant marginal opportunity cost

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D

none of these

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Solution

The correct option is C

constant marginal opportunity cost


Slope of PPC is concave to the point of origin in case of rising marginal opportunity cost. In case of constant marginal opportunity cost, PPC becomes a straight line.


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