Because resources are not equally well suited to producing all goods,
A) as more of a good is produced the inputs used to produce that good will increase in price.
B) the opportunity costs of producing a good will increase as more of that good is produced.
C) the opportunity costs of producing a good will decrease as more of that good is produced.
D) as more of a good is produced the quality of that good declines and therefore the costs of production increase.

Question

Quizplus · Accepted Answer

The principle of increasing opportunity costs states that as production of a good increases, the opportunity cost of producing an additional unit of that good will increase. This is because resources are not equally efficient in producing all goods, so as more of a good is produced, less suitable resources are used, increasing the cost in terms of foregone production of other goods.

Because Resources Are Not Equally Well Suited to Producing All