Question

Consider two straight-line PPFs. They have the same vertical intercept, but curve I is flatter than curve II. The opportunity cost of producing the good on the horizontal axis
(A) is greater along curve I.

(B) is greater along curve II.

(C) is the same along both curves.

(D) cannot be compared for the two curves without more information.

Answer 1

Answer:

c) is the same along both curves.

Explanation:

Two straight-line PPFs have the same vertical intercept, but curve I is flatter than curve II. The opportunity cost of producing the good on the horizontal axis is the same along both curves.