The proposition that states that as output increases for one good in an economy that is on its production possibilities curve, the cost of additional units of the good on the horizontal axis will be greater and greater is the:

Question

Quizplus · Accepted Answer

The proposition described is known as the law of increasing opportunity cost. As an economy produces more of one good, it must give up increasingly larger amounts of other goods, resulting in a higher opportunity cost for producing additional units of the good on the horizontal axis. This reflects the idea that resources are not perfectly adaptable to producing different goods and that there are trade-offs in the production process. The other answer choices are not relevant to this concept.

The Proposition That States That as Output Increases for One