Question

Can PPC be a straight line and when?Explain with an example

Answer 1

a PPC a curve can be a straight line when the marginal rate of transformation(MRT) is constamt through the curve

Answer 2

In Economics, PPC stands for Production Possibility Curve. Yes, it can be a straight line.

Opportunity cost  (also called as 'marginal rate of transformation') is in direct proportion with the shape of the PPC.

When the opportunity cost remains constant, the shape of the Production possibility Frontier curve is a straight line,

Example:

A company is involved in the production of goods such as Cheese and Butter.

For every quantity of the butter relinquished, there is production of an extra quantity of Cheese. For this scenario, the PPC will be a straight line curve.

Here, the opportunity cost is constant, in spite of the change in production of the two goods.