Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus.Complete the table by calculating the required opportunity costs for brushes and combs. On the basis of your calculations in Table 1.3
-the law of increasing opportunity costs applies to
A)Both brushes and combs.
B)Combs but not brushes.
C)Brushes but not combs.
D) Neither brushes nor combs

Question

Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus.Complete the table by calculating the required opportunity costs for brushes and combs.  On the basis of your calculations in Table 1.3
-the law of increasing opportunity costs applies to
A)Both brushes and combs. 
B)Combs but not brushes. 
C)Brushes but not combs. 
D) Neither brushes nor combs

Quizplus · Accepted Answer

The law of increasing opportunity costs states that as more of one good is produced, the opportunity cost of producing an additional unit of that good increases. This is because the resources used to produce the additional unit could have been used to produce something else. In the case of brushes and combs, the law of increasing opportunity costs applies to both goods. As more brushes are produced, the opportunity cost of producing an additional brush increases because the resources used to produce the additional brush could have been used to produce combs. Similarly, as more combs are produced, the opportunity cost of producing an additional comb increases because the resources used to produce the additional comb could have been used to produce brushes.

Table 13 Shows the Hypothetical Trade-Off Between Different Combinations of Brushes