If the law of increasing opportunity cost holds, can the ...

[P68T]

If the law of increasing opportunity cost holds, can the production possibility frontier be a straight line?
 
  What will be an ideal response?

Question 2

What is meant by the expected rate of return?
 
  What will be an ideal response?

[Jadwiga9]

Answer to Question 1

No. If the production possibility curve is a straight line, this would imply that the marginal rate of transformation is constant. This cannot be the case if the law of increasing opportunity costs holds.

Answer to Question 2

The expected rate of return is the annual rate of return that a firm expects to obtain through a capital investment.

[P68T]

Great answer, keep it coming

[phuda]

Thanks for the timely response, appreciate it