The opportunity cost of producing a good rises only slightly as the quantity produced increases.This good has
A) an inelastic demand.
B) an elastic demand.
C) an elastic supply.
D) an inelastic supply.
E) a perfectly elastic supply.

Question

Quizplus · Accepted Answer

The opportunity cost of producing a good is directly related to the elasticity of its supply. If the opportunity cost rises only slightly with increased production, it indicates that the supply is elastic, meaning producers can increase output without a significant rise in costs.

The Opportunity Cost of Producing a Good Rises Only Slightly