Which statement is an economic rationale for the law of increasing opportunity cost?
A) The economy is employing all of its available resources.
B) Many economic resources are better at producing one product than another.
C) In any economy, the state of technology is changing and resources are variable.
D) The economy is achieving productive efficiency by producing goods and services at the least cost.

Question

Quizplus · Accepted Answer

The law of increasing opportunity cost arises because resources are not equally efficient in producing all goods. As more of a good is produced, resources less suited for its production must be used, increasing the opportunity cost.

Which Statement Is an Economic Rationale for the Law of Increasing