Which of the following statements describes the law of increasing costs?
A)As the economy's production level of any particular item decreases,its opportunity cost rises.
B)As the economy's production level of any particular item increases,its opportunity cost rises.
C)The prices of consumer goods always rise and never fall.
D)If someone waits to make a purchase,she will pay a higher price.
E)The total cost of production rises as output goes up.

Question

Quizplus · Accepted Answer

The law of increasing costs states that as the economy's production level of any particular item increases, its opportunity cost rises. This means that in order to produce additional units of a good, society must give up more and more of an alternative good. This can be due to limited resources, inefficient production methods or increasing costs.

Which of the Following Statements Describes the Law of Increasing