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When the production possibilities frontier is a straight line, then production occurs under conditions of:_______

Sagot :

The slope of the production possibility curve remains constant if the curve is a straight line. This indicates that the two commodities' marginal rate of technological substitution is similarly constant.

What Is the Production Possibility Frontier (PPF)?

The production possibility frontier (PPF) is a curve on a graph that depicts the potential output of two goods whose production is dependent on the same limited resource. Another name for the PPF is the production possibility curve.

Opportunity cost in the production of commodities is what is lost when resources are diverted from one product to another. A curve on a graph depicts the quantity that can be generated to its maximum.

The production possibility frontier (PPF), which depicts situations that are impractical given the available resources, is above the curve.

Learn more about Production Possibility Frontier refer

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