Which statement is an economic rationale for the law of increasing opportunity cost?
A) The economy is employing all of its available resources.
B) Many economic resources are better at producing one product than another.
C) In any economy,the state of technology is changing and resources are variable.
D) The economy is achieving productive efficiency by producing goods and services at the least cost.

Question

Quizplus · Accepted Answer

The law of increasing opportunity cost states that as the production of one good increases, the opportunity cost of producing the additional unit also increases. This is because many economic resources are better at producing one product than another. For example, as a farmer produces more and more wheat, they may have to allocate less fertile land to produce each additional unit. This means that the opportunity cost of producing a bushel of wheat increases as more units are produced, making it less efficient to produce more.

Which Statement Is an Economic Rationale for the Law of Increasing