The law of increasing opportunity cost explains why _____

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 of that good increases. This is because resources are not perfectly adaptable to the production of all goods. As more of one good is produced, resources less suited to its production must be used, increasing the opportunity cost. This results in a production possibilities frontier (PPF) that is curved, reflecting the increasing cost of producing one good over another.

The Law of Increasing Opportunity Cost Explains Why _____