The law of increasing opportunity cost reflects the fact that

Question

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The law of increasing opportunity cost states that as production of one good increases, the opportunity cost of producing the next unit of that good increases, leading to a bowed out shape of the production possibilities frontier. This is because resources are not perfectly substitutable and the cost of producing additional units increases as resources are reallocated from the production of other goods.

The Law of Increasing Opportunity Cost Reflects the Fact That