The law of increasing opportunity costs states that along a production possibili

CuriousTab

Discussion

Home ‣ General Knowledge ‣ Indian Economy See What Others Are Saying!

Question
The law of increasing opportunity costs states that
Options
A. along a production possibilites curve, increases in the production of one good make the production of that good easier and easier
B. increases in wages cause increases in the costs of production
C. costs of production increases and then decreases
D. along a production possibilities curve, increases in the production of one good require larger and larger sacrifices of the other good

Correct Answer

along a production possibilities curve, increases in the production of one good require larger and larger sacrifices of the other good

Explanation

Opportunity cost is the cost of other alternative choices for making your interested choice of work. Oppurtunity cost is also called as alternative cost.

For example on a holiday, you have two choices to do, either you can go to movie or a function. And if you chose to go to moavie, the oppurtunity cost of going to movie is the value that would have gotten if you had gone to function.

The law of increasing opportunity costs states that as you increase production of one good, the opportunity cost to produce an additional good will increase.

Tags: