The law of increasing opportunity costs states that:
A)if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of other goods to do so.
B)the sum of the costs of producing a particular good cannot rise above the current market price of that good.
C)if the sum of the costs of producing a particular good rises by a specified percent, the price of that good must rise by a greater relative amount.
D)if the prices of all the resources devoted to the production of goods increase, the cost of producing any particular good will increase at the same rate.

Question

Quizplus · Accepted Answer

The law of increasing opportunity costs states that in order to produce more of one good, society must sacrifice more and more of another good, meaning the opportunity cost of producing that good increases as more of it is produced. This is due to the fact that resources are not perfectly adaptable for alternative uses and the best resources for producing one good may not be the best resources for producing another good. As a result, as society produces more of a particular good, it must use increasingly less efficient resources in order to produce additional units, leading to a higher opportunity cost.

The Law of Increasing Opportunity Costs States That