Refer to the following figure for the questions that follow.

-As you move from points N to M to L,the opportunity cost of additional apple pie:
A) decreases due to the law of increasing relative cost.
B) increases due to the law of increasing relative cost.
C) decreases due to the law of normative economics.
D) increases due to the law of marginal analysis.
E) decreases due to enhancements in technology.

Question

Refer to the following figure for the questions that follow.
 
-As you move from points N to M to L,the opportunity cost of additional apple pie:
A) decreases due to the law of increasing relative cost. 
B) increases due to the law of increasing relative cost. 
C) decreases due to the law of normative economics. 
D) increases due to the law of marginal analysis. 
E) decreases due to enhancements in technology.

Quizplus · Accepted Answer

According to the law of increasing relative cost, as you move from N to M to L, the opportunity cost of additional apple pie increases. This is because the production of apple pie becomes relatively more costly compared to blueberry pie as more units of apple pie are produced. Therefore, the best choice is B.

Refer to the Following Figure for the Questions That Follow