The principle of increasing marginal opportunity cost does not hold in which of the following cases?
A)All inputs are equally adaptable to the production of all goods.
B)Some inputs are more adaptable to the production of certain goods.
C)Some inputs are less adaptable to the production of certain goods.
D)Each input is adaptable to the production of a limited number of goods.

Question

Quizplus · Accepted Answer

When all inputs are equally adaptable to the production of all goods, the opportunity cost remains constant, and the principle of increasing marginal opportunity cost does not apply.

The Principle of Increasing Marginal Opportunity Cost Does Not Hold