The law of increasing additional cost occurs when
A) there are always shortages in some goods.
B) technology is not used.
C) resources are not perfectly adaptable for alternative uses.
D) there are always alternatives and it is costly to figure out which alternative is best.

Question

Quizplus · Accepted Answer

The law of increasing additional cost states that as the production of one good increases, the additional cost to produce an additional unit of that good will increase. This is due to the fact that resources are not perfectly adaptable for alternative uses, meaning that as more resources are devoted to the production of a particular good, the opportunity cost of using those resources for alternative uses also increases. Therefore, the correct answer is C.

The Law of Increasing Additional Cost Occurs When