When the opportunity cost of producing more of a good is increasing, the marginal cost of producing more of the good is
A) increasing.
B) decreasing.
C) constant.
D) More information is needed to answer the question.

Question

Quizplus · Accepted Answer

When the opportunity cost of producing more of a good is increasing, it means that more and more resources have to be diverted from the production of other goods to produce additional units of the good. This leads to an increase in the marginal cost of production.

When the Opportunity Cost of Producing More of a Good