Figure 2-11
-Refer to Figure 2-11. The opportunity cost of more doghouses decreases as more doghouses are produced.

Question

Figure 2-11 
-Refer to Figure 2-11. The opportunity cost of more doghouses decreases as more doghouses are produced.

Quizplus · Accepted Answer

The opportunity cost of producing more of one good (in this case, doghouses) typically increases as production shifts towards that good, due to the principle of increasing opportunity costs. This principle states that as production of one good expands, the opportunity cost of producing an additional unit of that good increases, because resources are not equally efficient in producing all goods.

Figure 2-11 -Refer to Figure 2-11. the Opportunity Cost of More Doghouses