If the Production Possibility Frontier Is a Straight Line

question 137

Multiple Choice

If the production possibility frontier is a straight line:

• A)opportunity costs are constant.
• B)firms face increasing costs.
• C)firms face decreasing costs.
• D)there is no trade-off between the two goods represented.

---

Definitions:

Merchant

A person or company engaged in the wholesale or retail sale of goods or services.

Authorized Dealer

An entity or individual officially recognized and permitted by a manufacturer or government to sell or distribute specific products or services.

Homemade Furniture

Furniture created by individuals rather than manufactured by companies, often characterized by its unique design and the personal touch of its maker.

Used Lawn Mowers

Pre-owned machinery for cutting grass, subject to consumer rights and protections when sold in a commercial transaction.