The _____ states that the opportunity cost of producing a good always rises as you produce more of it.
a. law of increasing relative cost
b. law of positive economics
c. law of demand
d. production possibilities frontier (PPF) model
e. zero-sum game
Opportunity cost is explained when a person decided to forgive an opportunity to choose another in the economy. The cost that will incur to lose an alternative describes an individual's opportunity cost that could be in terms of quantity or utility.
Answer and Explanation: 1
The correct option is law of increasing relative cost.
The Law of increasing relative cost is an economic concept, which explains that...
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fromChapter 1 / Lesson 6
Learn what is opportunity cost, including the opportunity cost definition, assessment and examples. See how to calculate opportunity cost using the formula.