All inputs in a business are not equally productive at all activities. As the business increases its output, marginal opportunity cost

Question

Quizplus · Accepted Answer

As the business increases its output, it will need to use progressively less productive (marginal) inputs. This means the opportunity cost of using those inputs increases, resulting in the increase of marginal opportunity cost. Therefore, the correct choice is C – increases.

All Inputs in a Business Are Not Equally Productive at All