Which of the following statements describes the key assumption behind the law of increasing costs?
A)Not all resources are equally suitable for the production of goods and services.
B)All resources are equally suitable for the production of goods and services.
C)All resources available are not fixed in the production of goods and services.
D)Although resources are available in unlimited amounts,their usefulness in production is limited over time.

Question

Quizplus · Accepted Answer

The law of increasing costs assumes that not all resources are equally suitable for the production of goods and services, meaning that as production increases, resources that are less efficient or less suitable for production must be used, leading to higher costs of production.

Which of the Following Statements Describes the Key Assumption Behind