The law of increasing costs indicates that the opportunity cost of producing a good:

Question

Quizplus · Accepted Answer

The law of increasing costs states that as the production of a good increases, the opportunity cost of producing an additional unit increases as well. This means that more resources must be diverted from other uses to produce each additional unit, making it increasingly expensive in terms of the foregone alternative uses of those resources. Therefore, the correct answer is C, which states that the opportunity cost of producing a good increases as more of the good is produced.

The Law of Increasing Costs Indicates That the Opportunity Cost