The opportunity cost of producing an additional unit of an item typically decreases as the more units of that item are produced.

Question

Quizplus · Accepted Answer

The opportunity cost of producing an additional unit of an item typically increases due to the law of increasing opportunity costs, which states that to produce more of one good, a larger amount of another good must be sacrificed, assuming that all resources are fully utilized.

The Opportunity Cost of Producing an Additional Unit of an Item