A Straight-Line Production Possibilities Boundary Differs from a Concave Boundary

question 79

Multiple Choice

A straight-line production possibilities boundary differs from a concave boundary in which of the following ways?

• A)The straight-line boundary illustrates constant opportunity costs,whereas the concave boundary illustrates increasing opportunity costs.
• B)The concave boundary illustrates constant opportunity costs,whereas the straight-line boundary illustrates decreasing opportunity costs.
• C)The straight-line boundary does not show scarcity,whereas the concave boundary does.
• D)The straight-line boundary shows opportunity cost,whereas the concave boundary does not.
• E)A straight-line boundary is associated with a command economy,whereas a concave boundary is associated with a free-market economy.

---

Definitions:

Target-Return Pricing

A pricing strategy where the price is set to achieve a specified return on investment or cost.

Creativity in Pricing

The application of innovative and strategic approaches to setting prices with the aim of optimizing profitability and market share.

Markup

The amount added to the cost of a product in setting the final price. It can be based on selling price or on cost.

Specified Percentage

A particular proportion or share expressed as a fraction of 100, often relating to financial or operational metrics.