The opportunity cost of a particular good tends to increase with its rate of output because some resources cannot be easily adapted from the production of one good or service to another.

Question

Quizplus · Accepted Answer

The statement is true. As the rate of output of a particular good increases, the resources used in its production become more specialized, making it harder to adapt them to the production of other goods. As a result, the opportunity cost of producing that good increases.

The Opportunity Cost of a Particular Good Tends to Increase