As resources are transferred from production of trucks to the production of computers, marginal cost of computers decreases.

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Quizplus · Accepted Answer

According to the law of increasing opportunity costs, as resources are transferred from the production of one good (trucks) to another (computers), the marginal cost of producing the additional units of the second good (computers) typically increases, not decreases. This is because resources are not equally efficient in all uses, so as more resources are reallocated, less suitable resources are used, increasing costs.

As Resources Are Transferred from Production of Trucks to the Production