The law of increasing opportunity costs states that:a. the sum of the costs of producing a particular good cannot rise above the current market price of that good * b. if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of other goods to do soc. if the prices of all the resources devoted to the production of goods increase, the cost of producing any particular good will increase at the same rated. if the sum of the costs of producing a particular good rises by a specified percent, the price of that good must rise by a greater relative amount

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Business

Apollo

7 July, 12:42

The law of increasing opportunity costs states that:a. the sum of the costs of producing a particular good cannot rise above the current market price of that good * b. if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of other goods to do soc. if the prices of all the resources devoted to the production of goods increase, the cost of producing any particular good will increase at the same rated. if the sum of the costs of producing a particular good rises by a specified percent, the price of that good must rise by a greater relative amount

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Ben Kemp · Answer 1

The correct answer is option b.

Explanation:

The opportunity cost of any economic decision is the cost involved in sacrificing the next best alternative. We know that resources are scarce and have alternative uses. To increase the production of one good we need to decrease or give up production of its alternative.

As we go on the production of one good the marginal opportunity cost will go on increasing. This is because of resources are not perfectly substitutable for both goods. So as we go on increasing production of one good we need to sacrifice producing more and more of the other good.