Question

On the production possibilities frontier, the opportunity cost of producing one more unit of a commodity per period is measured by the _____

Answer 1

Answer:

Shape of the production possibility frontier curve.

Explanation:

Production possibility frontier curve is the graphical representation of various combination of two goods that a firm can produce by the given technology or other factors of production.

Opportunity cost in this context refers to the amount of one good is sacrificed for producing one extra unit of other commodity. The opportunity cost is normally related with the share of the production possibility curve. If the PPF curve is a horizontal line, then the opportunity cost remains the same over the different level of production of goods.