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Commerce · Q275

Economics

Graduate and Post Graduate · Commerce · question 275

Q275

If the marginal (additional) opportunity cost is a constant then the PPC would be

A.
Straight line
Answer
B.
Convex
C.
Backward leading
D.
Concave

Answer: Option A

Solution

Answer: Option A
Solution:
If the marginal (additional) opportunity cost is a constant then the PPC would be Straight line. Ppc constant means goods are perfect substitute if they are perfect substitute then that curve is a straight line