When a Production Possibilities Frontier Is Linear,what Does It Show

question 228

Multiple Choice

When a production possibilities frontier is linear,what does it show?

• A)a truer picture of real life than a bowed-out production possibilities frontier
• B)that resources are perfectly shiftable from the production of one good to another
• C)an example of increasing opportunity cost
• D)an example of decreasing opportunity cost

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Definitions:

Planning Horizon

A Planning Horizon is the future time period over which forecasts, plans, or projections are made, affecting decision-making processes in business or personal contexts.

Aggregate Planning

A marketing activity that aims to balance supply and demand in the long-term, integrating major functions like sales, manufacturing, and finance.

Years

Units of time equal to 365 days (or 366 days in a leap year), used as a measure of time passing.

Linear Programming

A mathematical technique for optimizing a linear objective function, subject to linear equality and inequality constraints.