If a nation must employ resources that become progressively less suited for the production of a good:
A)decreasing opportunity costs are present
B)the nation should produce only that good
C)increasing opportunity costs are present
D)the nation should not produce any of that good

Question

Quizplus · Accepted Answer

When a nation must employ resources that become progressively less suited for the production of a good, there are increasing opportunity costs. This means that to produce more of a particular good, the nation will have to give up more and more resources that could have been used for producing other goods. Therefore, it is not efficient to produce only that good, and the nation should consider producing a combination of goods based on comparative advantage. However, the opportunity costs of producing each good will increase as more units are produced, which means it may eventually become too expensive to produce any more of a particular good.

If a Nation Must Employ Resources That Become Progressively Less