Which of the Following Correctly Characterizes the Shape of a Constant

question 118

Multiple Choice

Which of the following correctly characterizes the shape of a constant opportunity cost production possibilities curve?

• A)A straight line indicating that the law of increasing opportunity costs applies.
• B)A straight line when there is constant opportunity costs.
• C)A line that curves outward when resources are perfectly adaptable in the production of different goods.
• D)A line that curves inward when resources are perfectly adaptable in the production of different goods.

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Definitions:

Marginal Benefit

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Marginal Cost

The increase in cost that arises from producing an additional unit of a good or service.

Marginal

Incremental, additional, or extra; used to describe a change in an economic variable.

Incremental

Describes small, gradual changes or increases made over a period of time.