The law of increasing opportunity costs indicates that:
A) resources are perfectly mobile except for transportation costs.
B) the sum of all costs cannot rise above the market price of a product.
C) to produce more of one good,society must sacrifice larger and larger amounts of alternative goods.
D) if the prices of all the resources involved in the production of goods increase,the cost of producing those goods will increase at the same rate.

Question

Quizplus · Accepted Answer

The law of increasing opportunity costs implies that to produce more of a good, society must sacrifice larger and larger amounts of alternative goods. This is because resources are not perfectly adaptable to producing all types of goods equally effectively, leading to increasing opportunity costs as more of a good is produced. Therefore, the production of more of one good implies sacrificing increasing amounts of other goods.

The Law of Increasing Opportunity Costs Indicates That