Which of the following BEST illustrates increasing opportunity costs?

Question

Quizplus · Accepted Answer

Increasing opportunity costs occur when producing more of one good requires producing less of another good. In this scenario, as more rice is produced, farmers have to give up using land that is excellent for growing other crops but poor for growing rice. This illustrates increasing opportunity costs as the more rice produced, the higher the opportunity cost of producing other crops. Choice A is incorrect as it describes a scarcity issue, not increasing opportunity costs. Choice B is incorrect as it only mentions the cost to existing workers, not the increasing opportunity cost. Choice C is incorrect as it describes a situation where costs exceed potential profits, but it does not describe increasing opportunity costs.

Which of the Following BEST Illustrates Increasing Opportunity Costs