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 also increases. This is because the resources used to produce the good may not be equally efficient in producing more of that same good, leading to a higher cost in terms of lost alternative production possibilities. Therefore, the correct choice is C, where 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