If the law of increasing opportunity costs is operable,and currently the opportunity cost of producing the 101st unit of good X is 5Y,then the opportunity cost of producing the 201st unit of good is X is
A) less than 5Y.
B) greater than 1/5Y but less than 5Y.
C) greater than 5Y.
D) less than 1/5Y but more than zero.

Question

Quizplus · Accepted Answer

The law of increasing opportunity costs states that as production of a good increases, the opportunity cost of producing an additional unit of that good will increase. Therefore, the opportunity cost of producing the 201st unit of good X is greater than the opportunity cost of producing the 101st unit, which is 5Y.

If the Law of Increasing Opportunity Costs Is Operable,and Currently