Opportunity cost & the production possibilities curve (PPC) (article)

Hmmm…
other things about a Constant Opportunity Cost of a Production Possibilities Frontier, PPF, or Curve PPC…

So I believe you already understand that…
A PPF w/Constant Opportunity Cost is a linear line, meaning the line is straight (not curved), and…

•To be linear means the change between any two points anywhere on the line will be consistent.
The Slope of any two points, is the same as the slope of any other two points.
So it is constant because the slope is constantly the same.

•Which means it's constantly the same opportunity cost no matter how many units you make of either item.

Neither small batches nor bulk creation will change the opportunity cost, (make the y/x or PPF line differ).

We will always give up the same amount of x to make a certain amount of y, or vice versa.

•A PPF w/Constant Opportunity Cost indicates that the conditions are equally suited to make either product, so the resources are interchangeable!

•A deeper look…
(by example comparison)
Since PPF displays the possible product combinations that can/could be made limited by finite resources (time, ingredients, labor, money, supply, whatever…), and…

•Any core conditions change brings extra costs, to produce x that significantly differs from y will curve the line…

So the PPF will often be curved because frequently production of products differs in fundamental ways.

Blankets to Flooring, both using eco-friendly bamboo and hemp fibers, but a different skill set, (required retraining costs: production time loss, skilled workers loss (from the other product), profit loss, and instructor pay, each taken from the finite total allocated for both x and y)…
each changing the y/x balance,
so the PPF line curves…

or transformation of materials (instead of spun fiber threads to weave, they need fine mulch to mold and emboss patterns)…
so the PPF line curves…

•Without new investment, most x or y exchanges will curve the line, reflecting the higher opportunity cost of production differences…

-Bulging out convex, an 'increasing opportunity cost' (for growing vexing issues), or…

-Caving in concave, a 'decreasing opportunity cost' (for shrinking issues).

•So resources need to be swappable for a Constant Opportunity Cost, (straight/linear PPF), to have no new costs, it does not have to be a one-to-one, just consistently the same quantities of y/x exchanged throughout production of either item.

Perhaps a paper producer with very versatile automated machinery, is considering between: uncut paper rolls or pre-sliced sheets, or comparing different weights of paper (thinner to thicker), or legal to standard length, or posters to postcards…
if they're still using the same skilled workers, materials, machines, etc…
the same y/x balance,
the PPF is straight!

Perhaps a chocolates creator considering between similar already producible products: bonbons to full bars, if they're using the same ingredients, the chocolatiers, the same tempering and cooling methods and technology, etc…
it keeps the y/x constant,
the PPF is straight!

•Therefore a Constant Opportunity Cost would more likely occur in an established production situation of similar possible products.

When switching between x and y is just reallocating the 'what/where/how' conditions that are equally suited to create either potential product, the PPF is a straight line.

So in specialty fields, with superficial distinction between products, resources are interchangeable, so the Opportunity Cost stays the same constant price.

For production purposes the only difference will be the quantity created of x or y.

(≧▽≦) I hope that helps someone!

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