The law of increasing opportunity costs states that
A) if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of another good to do so.
B) the sum of the costs of producing a particular good cannot rise above the current market price of that good.
C) if the sum of the costs of producing a particular good rises by a specified percentage, the price of that good must rise by a greater relative amount.
D) if the prices of all the resources used to produce goods increase, the cost of producing any particular good will increase at the same rate.

Question

Quizplus · Accepted Answer

The law of increasing opportunity costs states that as we try to produce more of one good, the opportunity cost of producing that good increases, meaning we have to give up increasing amounts of other goods to produce each additional unit of the desired good. In other words, there is a trade-off between producing different goods, and as we shift resources from producing one good to another, the opportunity cost of producing the second good increases.

The Law of Increasing Opportunity Costs States That