The principle of increasing opportunity cost occurs because
A) resources are not equally suited to all activities.
B) we must give up something to get something else.
C) scarcity exists.
D) resources are being used inefficiently.

Question

Quizplus · Accepted Answer

The principle of increasing opportunity cost occurs because resources are not equally suited to all activities. As we produce more of a good, we have to give up more and more of another good to produce every additional unit. This happens because the resources that are best suited to producing the first units of a good are not necessarily the ones best suited to producing additional units.

The Principle of Increasing Opportunity Cost Occurs Because