Opportunity costs arise in production because
A) resources are unlimited
B) resources must be shifted away from producing one good in order to produce another
C) wants are limited in society
D) monetary costs of inputs usually outweigh non-monetary costs
E) the monetary costs of only a few resources are zero

Question

Quizplus · Accepted Answer

Opportunity cost arises when resources must be shifted away from producing one good in order to produce another. This means that producing one good has a cost in terms of what could have been produced with those resources instead.

Opportunity Costs Arise in Production Because