If the opportunity cost of producing more of one good increases as more of that good is produced,then the production method is inefficient.

Question

Quizplus · Accepted Answer

The increasing opportunity cost occurs due to the law of increasing opportunity costs, which is a result of resources not being perfectly adaptable to the production of all goods. It reflects the economic reality of scarce resources and does not necessarily indicate inefficiency.

If the Opportunity Cost of Producing More of One Good