A Straight-Line Production Possibilities Curve Takes This Shape Because

question 286

Multiple Choice

A straight-line production possibilities curve takes this shape because

• A) the opportunity cost of producing a good is constant.
• B) the opportunity cost of producing more of a good is decreasing.
• C) resources are better suited for producing one output than another.
• D) resources are fixed.

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Definitions:

Special Order

An order for a product or service that is outside of the company's regular operations or production schedule, often requiring special pricing or conditions.

Excess Capacity

Refers to a situation where a company has more production capability available than is necessary to meet demand, often resulting in unused resources or facilities.

Financial Advantage

A benefit that helps to improve a company's financial position, which can include lower costs, access to new markets, or additional revenues.

Financial Advantage

The benefit gained in financial terms, providing an edge over competitors or contributing to financial stability.