When resources are limited, producing more of one good means producing less of something else. The opportunity cost of producing more of a good is the value given up by not producing the second-best choice.

Question

Quizplus · Accepted Answer

This statement correctly defines the concept of opportunity cost. When resources are limited and choices must be made, producing more of one good requires sacrificing the production of something else. The opportunity cost represents the value of the next-best alternative forgone as a result of this decision.

When Resources Are Limited, Producing More of One Good Means