Which of the following is a reason for the law of increasing opportunity cost?
A)Some goods have limited alternative uses.
B)Not all resources are equally adaptable to other uses.
C)Prices of specific final goods increase as more of those goods are produced.
D)Prices of specific final goods decrease as more of those goods are produced.

Question

Which of the following is a reason for the law of increasing opportunity cost?
A)​Some goods have limited alternative uses.
B)​Not all resources are equally adaptable to other uses.
C)​Prices of specific final goods increase as more of those goods are produced.
D)​Prices of specific final goods decrease as more of those goods are produced.

Quizplus · Accepted Answer

The law of increasing opportunity cost states that as the production of a good increases, the opportunity cost of producing an additional unit of that good increases because resources are not equally adaptable to all uses. Therefore, as more resources are shifted towards producing a good, the opportunity cost of producing each additional unit of that good increases.

Which of the Following Is a Reason for the Law