The opportunity cost of a good increases as more of it is produced because
A) there is no such thing as a free lunch.
B) resources are not equally productive in all activities.
C) producing more of a good requires additional resources.
D) the number of forgone alternatives also increases.
E) people want the good less as more is produced.

Question

Quizplus · Accepted Answer

Resources are not equally productive in all activities, which means as more of a good is produced, producers must use resources that are less and less suited to the production of that good. This leads to an increase in the opportunity cost.

The Opportunity Cost of a Good Increases as More of It