1.

In which situation, can PPC be a straight line:

Answer»

When MRT is decreasing
When MRT is increasing
When MRT in CONSTANT
None of these.

Solution :C. A straight line PPC MEANS that for every unit of good y relinquished, an ADDITIONAL unit of good x can be produced. If the PPC is a CURVE, production is under increasing COSTS. This is because factors employed in the production of y is most suited for y's production, but not as well suited for x's production.


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