wiz-icon
MyQuestionIcon
MyQuestionIcon
2
You visited us 2 times! Enjoying our articles? Unlock Full Access!
Question

Production Possibility Curve (PPC) will be a straight line when __________.

A
opportunity cost of addition unit is constant
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
opportunity cost of addition unit is faffing
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
opportunity cost of addition unit is increasing
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
None of these
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is A opportunity cost of addition unit is constant
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.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Types of Plan
BUSINESS STUDIES
Watch in App
Join BYJU'S Learning Program
CrossIcon