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Introduction of Micro-Economics — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsIntroduction of Micro-Economics2 Marks
Question
Can a production possibility curve be a straight line? Explain.
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Answer

Yes, a production possibility curve can be a straight line, if marginal rate of transformation is constant. MRT is constant, if all the resources are equally efficient in production of all goods. But, this is not a common situation because resources are actually not equally efficient in the production of all goods. So, PPC is generally concave.

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