The principle that the opportunity cost increases as the production of one output expands along the production possibilities curve is the:

Question

Quizplus · Accepted Answer

The principle described in the question is known as the law of increasing opportunity costs. As more and more of one good is produced, increasing amounts of the other good must be given up. This is because resources are not perfectly adaptable to the production of different goods, and the resources best suited for the production of the first good may not be the ones best suited for the production of the second good. Therefore, the opportunity cost of producing an additional unit of the first good increases as production of that good expands.

The Principle That the Opportunity Cost Increases as the Production