Question

question 10 (10 points)
which of the following is illustrated when the production possibilities curve is a straight line?

as an increasing quantity of resources is shifted from one manufacturing process to another, there is no increase in opportunity cost.

opportunity costs increase as output of either commodity is expanded.

opportunity costs are negative.

resources are not equally substitutable between productions of the goods because there is an increase in opportunity cost.

Explanation:

A straight-line production possibilities curve (PPC) represents constant opportunity cost. This means that when resources are shifted from producing one good to another, the amount of the first good given up to produce each additional unit of the second good stays the same (no increase in opportunity cost). The other options describe increasing opportunity cost (curved PPC) or incorrect properties of opportunity cost.

Answer:

As an increasing quantity of resources is shifted from one manufacturing process to another, there is no increase in opportunity cost.