According to the law of increasing opportunity cost, as a society produces more and moreof a certain good, further production increases involve ever-greater opportunity costs, so that producing the good is associated with greater and greater trade-offs.

true/false

Question

Kenya

Business

28 May, 14:59

According to the law of increasing opportunity cost, as a society produces more and moreof a certain good, further production increases involve ever-greater opportunity costs, so that producing the good is associated with greater and greater trade-offs.

true/false

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Answers (1)

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Bryanna Paul · Answer 1

The statement is: True.

Explanation:

The increasing opportunity cost law states that as long as the production of a good or service increases, the opportunity cost of producing that next good or service will increase as well. For this scenario to take the factors of production - land, labor, and capital - must be at their maximum efficiency.

According to the law of increasing opportunity cost, as a society produces more and moreof a certain good, further production increases involve ever-greater opportunity costs, so that producing the good is associated with greater and greater trade-offs.true/false

According to the law of increasing opportunity cost, as a society produces more and moreof a certain good, further production increases involve ever-greater opportunity costs, so that producing the good is associated with greater and greater trade-offs.

true/false