If a country has a liner (downward sloping) production possibilities frontier, then production is said to be subjected to ?
Correct answer: A. constant opportunity costs
- A. constant opportunity costs
- B. decreasing opportunity costs
- C. first increasing and then decreasing opportunity costs
- D. increasing opportunity costs
Explanation
A linear production possibilities frontier has a constant slope, meaning that the same quantity of one good must always be sacrificed to produce an additional unit of the other. This is constant opportunity cost.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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