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Q: If the production possibilities curve was a straight line, this would imply that

  • 1
    Economic resources are perfectly substitutable, in the production of the two products
  • 2
    Equal quantities of both products are produced at each possible point on the curve
  • 3
    The two products will sell at the same market price
  • 4
    The two products are equally important to consumers
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Answer : 3. "The two products will sell at the same market price"
Explanation :

Answer: C) The two products will sell at the same market price Explanation: A production–possibility frontier (PPF) or production possibility curve (PPC) is the possible tradeoff of producing combinations of goods with constant technology and resources per unit time.

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