As an economy increasingly specialises in producing one good, the opportunity cost of that good increases. The opportunity cost increases because

Question

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As an economy increasingly specializes in producing one good, resources become less adaptable to producing other goods. This means that some resources will be more productive in producing the specialized good, while others will be less productive. Therefore, the opportunity cost of producing that good increases because it requires giving up more of the less productive resources, which could have been used to produce other goods.

As an Economy Increasingly Specialises in Producing One Good, the Opportunity