Increasing opportunity cost while moving along a production possibilities frontier is the result of
A) taxes.
B) firms' needs to produce profits.
C) the fact that it is more difficult to use resources efficiently the more society produces.
D) the fact that resources are not equally productive in alternative uses.

Question

Quizplus · Accepted Answer

The increasing opportunity cost is due to resources not being equally productive in all uses. As production shifts from one product to another, more and less suited resources are reallocated, leading to less efficient production and higher opportunity costs.

Increasing Opportunity Cost While Moving Along a Production Possibilities Frontier