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 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.

c. if the prices of all the resources used to produce goods increase, the cost of producing any particular good will increase at the same rate.

d. if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of another good to do so.

Question

Business

Nikhil Chung

13 June, 03:41

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 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.

c. if the prices of all the resources used to produce goods increase, the cost of producing any particular good will increase at the same rate.

d. if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of another good to do so.

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Roach · Answer 1

d) if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of another good to do so.

This is true for a society, company, or even individuals. The more resources you put into producing one type of good, the harder and more expensive it will be to switch and the more opportunity costs go up for the things you aren't choosing to produce.