Question

The production possibilities frontier consists of straight-line segments, rather than being smoothly bowed outward throughout, because each worker faces a constant trade-off between mowing lawns and washing cars. True or false?

Answer 1

Answer:

True

Explanation:

The opportunity cost of washing cars is constant but it is not equal between the three men, that is why the production possibilities frontier is kinked shaped and not like a curve:

• Charles: 2 lawns mowed per car washed
• Gilberto: 1 lawn mowed per car washed
• Lorenzo: 1/2 lawn mowed per car washed

If the opportunity cost was not constant, then the production possibilities curve would have a curved shape.