Consider a PPF for Tapes and Soda

question 232

Multiple Choice

Consider a PPF for tapes and soda. If the opportunity cost of a tape increases as the quantity of tapes produced increases and also the opportunity cost of a soda increases as the quantity of soda produced increases, then the PPF between the two goods will be

• A) a straight, downward-sloping line.
• B) a straight, upward-sloping line.
• C) bowed outward.
• D) All of the above are possible and more information is needed to determine which answer is correct.