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Suppose Someone Finds a Production Possibilities Frontier (PPF)that Is Shaped

Question 109

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Suppose someone finds a production possibilities frontier (PPF) that is shaped like a straight line.What can one determine about the production of the two goods?


A) Production of the two goods is subject to decreasing relative cost.
B) Production of the two goods is subject to increasing relative cost.
C) Production of the two goods is subject to constant opportunity cost anywhere along the PPF.
D) One producer must have an absolute advantage in production.
E) More resources will not cause the PPF to shift.

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