The ________ states that the opportunity cost of producing a good always rises as you produce more of it.
A) law of increasing relative cost
B) law of positive economics
C) law of demand
D) production possibilities frontier (PPF) model
E) zero-sum game

Question

Quizplus · Accepted Answer

The law of increasing relative cost (also known as the law of increasing opportunity cost) states that the opportunity cost of producing a good rises as more of it is produced, because resources are not perfectly adaptable to producing both goods. This means that to produce more of one good, increasingly larger amounts of the other good must be given up.

The ________ States That the Opportunity Cost of Producing a Good