The law of increasing opportunity costs is best explained by
A) resources not being completely adaptable to alternative uses
B) factors of production being limited and human wants for goods being unlimited
C) efficiencies generated by large-scale production
D) economic efficiency being possible only in the short run

Question

Quizplus · Accepted Answer

The law of increasing opportunity costs is explained by resources not being completely adaptable to alternative uses, meaning as you produce more of one good, the opportunity cost in terms of other goods foregone increases because resources are not equally efficient in producing all goods.

The Law of Increasing Opportunity Costs Is Best Explained by