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.

e. none of the above

Question

Lance Kirby

Business

28 July, 16:52

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.

e. none of the above

+3

Answers (1)

Know the Answer?

Henry Peterson · Answer 1

C) more than 5Y

Explanation:

the opportunity cost of producing 101 units of X = 5 units of Y

if the opportunity costs increase as the number of units produced increases, then the opportunity cost of producing 201 units of X will be more than 5 unit of Y. This is simply because 5 units of Y was the opportunity cost of producing 101 units of X and the opportunity costs are increased.