The Principle of Increasing Opportunity Cost indicates that the proper sequence of resource usage to expand production is to
A) randomly choose the resources.
B) start with the highest opportunity cost resource and progress to the lowest opportunity cost resources.
C) start with a lower opportunity cost resource,then a higher cost one,then a lower cost,etc.
D) start with the lowest opportunity cost resource and proceed to the highest opportunity cost resources.
E) start with the average opportunity cost resource and progress to lower opportunity cost resources.

Question

Quizplus · Accepted Answer

The Principle of Increasing Opportunity Cost states that as the production of one good increases, the opportunity cost of producing additional units eventually increases. Therefore, it is most efficient to start with the lowest opportunity cost resource and progress to the highest opportunity cost resources. This ensures that the resources are used in the most efficient way possible and that the opportunity cost of producing additional units is minimized.

The Principle of Increasing Opportunity Cost Indicates That the Proper