-Refer to Exhibit 2-5.As more fax machines are produced,the opportunity cost of producing them
A) increases.
B) decreases.
C) remains constant.
D) first decreases and then increases.

Question

-Refer to Exhibit 2-5.As more fax machines are produced,the opportunity cost of producing them
A) increases. 
B) decreases. 
C) remains constant. 
D) first decreases and then increases.

Quizplus · Accepted Answer

The opportunity cost of producing more fax machines increases because to produce more of them, resources must be diverted from the production of other goods, which becomes increasingly costly as more resources are reallocated.