Question

In which situation, can PPC be a straight line:

पर्याय

• When MRT is decreasing

• When MRT is increasing

• When MRT is constant

• None of these

Answer 1

When MRT is constant

Explanation:

A straight-line PPC occurs when MRT is constant, meaning the same amount of one good is sacrificed for each additional unit of the other good. Decreasing MRT gives a convex PPC, and increasing MRT gives a concave PPC.