According to the law of increasing costs,as the United States expends more of its resources on reducing air pollution,
A)the quantity of other goods that must be given up for further reductions in air pollution will decrease.
B)the quantity of other goods that must be given up for further reductions in air pollution will increase.
C)the social cost of additional air pollution will increase.
D)there will be no change in the marginal cost of reducing air pollution.

Question

Quizplus · Accepted Answer

The law of increasing costs states that as the production of one good increases, the opportunity cost of producing the next unit also increases. Therefore, as the United States expends more resources on reducing air pollution, the opportunity cost of further reductions will also increase. This means that more of other goods and services will have to be given up to achieve further reductions in air pollution. Thus, the quantity of other goods that must be given up for further reductions in air pollution will increase.

According to the Law of Increasing Costs,as the United States