Question

If the production possibility frontier was a straight line, then there is still tradeoff, what will...

If the production possibility frontier was a straight line, then there is still tradeoff, what will happen to the value of opportunity cost as we produce more of one good?

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Answer #1

If the production possibility Frontier was a straight line,then there would be no benefit of specialisation and all the product which should be produced will yield the same benefit and there would be no opportunity cost present.

If the production possibility Frontier was a straight line, it means resources which is released by producing one lesser unit would be just sufficient to produce the similar good which will yield the similar benefit.

so there would be no opportunity cost when production possibility Frontier was a straight line.

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