The law of increasing opportunity cost explains why
A)opportunity cost is constant along the production possibilities frontier
B)the production possibilities frontier is downward sloping
C)the production possibilities frontier is curved
D)efficient points lie along the production possibilities frontier
E)technology remains constant along a production possibilities frontier

Question

Quizplus · Accepted Answer

The law of increasing opportunity cost states that as production of one good increases, the opportunity cost of producing an additional unit rises. This results in a curved production possibilities frontier, reflecting the increasing trade-offs.

The Law of Increasing Opportunity Cost Explains Why