Economics: If their is zero opportunity cost, what does the production possibilities curve look like?

Question

help please? (:

Answer 1

On a PPF the curve slope represents the opportunity cost. If the opportunity cost is zero, the slope will be zero (completely horizontal) or infinity (vertical).

Basically draw a graph with Good A on the y-axis and good B on the x-axis. If good A had zero opportunity cost associated with producing/consuming it, the PPF would look like a straight horizontal line. If the opposite were true and good B had zero opportunity cost, the PPF would be a straight vertical line. If both goods A and B had zero opportunity cost there would be no PPF since no matter how much of each good was produced nothing would need to be foregone.

I'll try and send you an email with a word doc with all the graphs in.

Hope that helps.