In the prodution possiblities frontier between two goods is

In the prodution possiblities frontier between two goods is a straight line, then the

A)line does not qualify as a production possiblitie frontier because the unattainable production points are too close to the inefficient production points

B) recoources are equally productive in both goods

C) opportnity cost is not a ratio

D) both answers A and C are correct

E) both answers A and B are correct

Solution

Correct option is (B).

A straight-line production possibilities frontier (PPF) signifies constant opportunity cost, which is possible when resources and factors of production are equally productive in production of both goods.