According to the law of increasing opportunity costs,
A)The more one is willing to pay for resources,the smaller will be the possible level of production.
B)Increasing the production of a particular good will cause the price of the good to remain constant.
C)In order to produce additional units of a particular good,it is necessary for society to sacrifice increasingly larger amounts of alternative goods.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

The law of increasing opportunity costs states that as production of a particular good increases, the opportunity cost of producing another unit of that good increases as well. This means that society must sacrifice increasingly larger amounts of alternative goods in order to produce additional units of the particular good. Choice A is incorrect because willingness to pay for resources does not necessarily impact the possible level of production. Choice B is incorrect because increasing production does not necessarily keep the price constant. Choice D is incorrect because there is a correct choice.

According to the Law of Increasing Opportunity Costs