Which principle states that as the production of one good expands, the opportunity cost of producing another unit of this good generally increases?
A)Principle of total cost
B)Principle of increasing cost
C)Principle of opportunity cost
D)Principle of increasing marginal utility

Question

Quizplus · Accepted Answer

The principle of increasing cost states that as the production of one good expands, the opportunity cost of producing another unit of this good generally increases. This is because resources are not equally productive in all activities, and as more resources are devoted to one activity, the opportunity cost of producing additional units of the other activity increases. Thus, the best answer is B.

Which Principle States That as the Production of One Good