Hypothetical schedule of straight line ppf
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Dear student,
Yes, PPF can be straight line., this happens when opportunity cost is constant.
If the PPF is a straight line, it implies that the slope is constant. I.e to produce an additional amount of Good 1 the economy would have to give up a constant amount(=opportunity cost) of Good 2 no matter how much amount of each item is being produced.
Regards
Yes, PPF can be straight line., this happens when opportunity cost is constant.
If the PPF is a straight line, it implies that the slope is constant. I.e to produce an additional amount of Good 1 the economy would have to give up a constant amount(=opportunity cost) of Good 2 no matter how much amount of each item is being produced.
Regards
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