The principle that the opportunity cost increases as the production of one output expands along the production possibilities curve is the:

Question

Quizplus · Accepted Answer

The principle described in the question is known as the law of increasing opportunity costs. It states that as production of one output expands, the opportunity cost of producing additional units of that output increases. This is because resources are not equally suited to the production of every type of good, so as you continue to produce more of one good, you have to start using resources that are less well-suited to that production, leading to a greater opportunity cost. The other options listed, such as the law of supply and the law of demand, are not relevant to this principle. The law of diminishing returns is related to production in the short run, but it does not specifically address the issue of opportunity cost.

The Principle That the Opportunity Cost Increases as the Production