What will be the shape of the PPC in the table below?
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Concave Convex Straight line Can be of any shape |
Straight line |
the correct answer is Option 3: Straight line The table provided shows that as production of Good A increases by a constant amount (10 units), the production of Good B decreases by an equal amount (10 units). This indicates a constant opportunity cost for producing both goods, meaning that the economy gives up the same quantity of Good B to produce an additional quantity of Good A at every point. In such a case, the Production Possibility Curve (PPC) would be a straight line, reflecting constant opportunity costs. |