The tendency of opportunity cost to increase as production increases
A)is an example of theory that has not been proven by facts.
B)is a general principle, but not a universal fact.
C)is a universal fact, with no known exceptions.
D)rarely holds in reality, but is a useful theory.
E)cannot be tested with standard economic tools.

Question

Quizplus · Accepted Answer

The tendency of opportunity cost to increase as production increases is a general principle in economics, known as the law of increasing opportunity costs. It suggests that as you produce more of one good, the opportunity cost of producing an additional unit of that good increases. This principle is widely observed and accepted in economics, but it may not apply in every single case or situation, making it a general principle rather than a universal fact.

The Tendency of Opportunity Cost to Increase as Production Increases