The principle of increasing marginal opportunity cost holds in which of the following cases?
A) All inputs are equally useful in the production of all goods.
B) The production possibility curve is a downward-sloping straight line.
C) Some inputs are better for producing particular goods.
D) Each input can be used to produce only one good.

Question

Quizplus · Accepted Answer

The principle of increasing marginal opportunity cost holds when some inputs are better suited for producing certain goods, leading to increasing costs as resources are reallocated to produce more of one good over another.

The Principle of Increasing Marginal Opportunity Cost Holds in Which