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

Question

Quizplus · Accepted Answer

The statement describes the law of increasing opportunity costs, which states that as more of a good is produced, the opportunity cost of producing each additional unit increases. This results in a bowed-out production possibilities curve, where resources are not equally suited to all types of production. Therefore, the correct choice is D.

When the Opportunity Cost of Producing Carrots Increases as More