As more of a good is produced, its opportunity cost tends to increase because resources are not equally efficient at producing all goods.

Question

Quizplus · Accepted Answer

This is due to the principle of increasing opportunity cost, which states that as production of a good increases, the opportunity cost of producing an additional unit of that good tends to increase as resources become less suited for production of that good and more specialized towards other goods.

As More of a Good Is Produced, Its Opportunity Cost