When the opportunity cost of producing more of a good is increasing, the marginal cost of producing more of the good is
A) decreasing.
B) increasing.
C) constant.
D) More information is needed to answer the question.

Question

Quizplus · Accepted Answer

When the opportunity cost of producing more of a good is increasing, it means that more and more resources have to be diverted from other uses, resulting in a higher marginal cost of producing an additional unit. Therefore, the marginal cost of producing more of the good is increasing.

When the Opportunity Cost of Producing More of a Good