The principle of increasing marginal opportunity cost states that the more resources devoted to any activity, the _ the payoff to devoting additional resources to that activity.

a. smaller

b. greater

c. proportional

d. more instant

The correct answer is option a.

Explanation:

Opportunity cost can be defined as the cost involved in sacrificing or giving up the alternative choice. Opportunity cost is an implicit cost. Unlike explicit cost it is not included in accounting cost. But it is included in economic costs.

The principle of increasing marginal opportunity cost states that as we go on employing more resources the marginal opportunity cost of sacrificing the alternative choice goes on increasing. As a result, with each additional resource employed the payoff or return from that resource goes on declining, or in other words, becomes smaller.