When the opportunity cost of producing carrots increases as more carrots are produced, then:

Question

Quizplus · Accepted Answer

The given scenario describes the law of increasing costs, which states that as we produce more of a good, the opportunity cost of producing each additional unit increases. This means that we have to give up more and more of the other goods that could have been produced with the same resources as we produce more of the given good. As a result, the production possibilities curve becomes positively sloped, indicating that more and more of the other good must be given up to produce additional units of the given good.

When the Opportunity Cost of Producing Carrots Increases as More