What is the reason for the law of increasing opportunity costs?
A) There is no reason: it is just one of the laws of economics.
B) Resources have varying abilities and those with lower opportunity costs of producing a good will be used to produce it before resources with higher opportunity costs produce it.
C) The price of a good rises as more of it is demanded.
D) As more of a good is produced,the taxes applied to the production of the good rise.
E) c and d

Question

Quizplus · Accepted Answer

The law of increasing opportunity costs states that as the production of one good increases, the opportunity cost of producing an additional unit (measured in terms of what must be given up of other goods) will also increase. This is because resources are not equally efficient in producing all goods, and as more units of a good are produced, the resources with the lowest opportunity cost of producing that good will be used up, and the resources with higher opportunity costs will have to be used, leading to a higher opportunity cost.

What Is the Reason for the Law of Increasing Opportunity