While Producing on the Production Possibilities Frontier, If Additional Units

question 197

Multiple Choice

While producing on the production possibilities frontier, if additional units of a good could be produced at a constant opportunity cost, the production possibilities frontier would be

• A) bowed outward.
• B) bowed inward.
• C) positively sloped.
• D) a straight line.

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Definitions:

Equilibrium

A situation in the market where demand matches supply, resulting in steady prices.

Supply Curve

The supply curve is a graphical representation showing the relationship between the price of a good and the amount that suppliers are willing and able to sell in the market.

Decrease

A reduction in quantity, size, or intensity.

Future

The indefinite time period after the present, often considered in the context of possibilities or uncertainties.