What is the reason for the law of increasing opportunity costs?
A)There is no reason: it is just one of the laws of economics.
B)Resources have varying abilities and those with lower opportunity costs of producing a good will be used to produce it before resources with higher opportunity costs produce it.
C)The price of a good rises as more of it is demanded.
D)As more of a good is produced, the taxes applied to the production of the good rise.

Question

Quizplus · Accepted Answer

The law of increasing opportunity costs exists because resources have varying abilities and those with lower opportunity costs of producing a good will be used to produce it before resources with higher opportunity costs produce it. As society produces more and more of a particular good, the opportunity cost of producing an additional unit eventually increases as resources that are less suited to producing that good need to be utilized.

What Is the Reason for the Law of Increasing Opportunity