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 most likely to be
A)less than 5Y.
B)more than 1/5Y but less than 5Y.
C)more than 5Y
D)less than 1/5Y but more than zero.

Question

Quizplus · Accepted Answer

As per the law of increasing opportunity costs, as we produce more and more of a good, the opportunity cost of producing an additional unit increases. Therefore, the opportunity cost of producing the 201st unit of good X is likely to be higher than the opportunity cost of producing the 101st unit. Thus, we can eliminate choices A, B, and D. The correct answer is C, which states that the opportunity cost of producing the 201st unit is more than 5Y.

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