Increasing opportunity cost is due to

Question

Quizplus · Accepted Answer

Opportunity cost is the cost of giving up one option in favor of another. Increasing opportunity cost happens when resources are not equally suited for different types of production, meaning that as we produce more of one good, we have to give up increasing amounts of another. This is because the resources that are best suited for producing the first good are used up, so we have to use resources that are not as well suited, which increases the opportunity cost. The other options (A, C, D) do not accurately describe why opportunity cost increases.

Increasing Opportunity Cost Is Due to