The production possibilities frontier is a downward-sloping straight line when - 11527

Solution Posted by
Solution Detail
Price: $1.25
  • From: ,
  • Posted on: Sun 24 Jun, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

The production possibilities frontier is a downward-sloping straight line when

a. it is possible to switch between one good and the other good at a constant opportunity cost.

b. there is no tradeoff involved in switching between one good and the other good.

c. the same amount of time is required to produce a unit of one good as is required to produce a unit of the other good.

d. the person for whom the frontier is drawn wishes to consume equal amounts of the two goods.