_______ help explain the law of increasing opportunity costs.
A) Differing consumer preferences
B) The characteristics of a pure market system
C) Advancements in technology
D) Imperfect substitutability of resources
E) Decreases in the availability of natural resources

Question

Quizplus · Accepted Answer

The law of increasing opportunity costs states that as more units of a good are produced, the opportunity cost of producing each additional unit increases. This is due to the fact that resources are not perfectly substitutable, and as more resources are devoted to the production of a particular good, the opportunity cost of using those resources for alternative purposes increases. Therefore, the best choice is D, as it directly relates to the principle behind the law of increasing opportunity costs.

_______ Help Explain the Law of Increasing Opportunity Costs