The states that the opportunity cost of producing a good always rises as you produce more of it....
Question:
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:
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
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View this answerThe correct option is law of increasing relative cost.
Explanation:
The Law of increasing relative cost is an economic concept, which explains that...
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Opportunity Cost: Formula & Analysis
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Chapter 1 / Lesson 6
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Learn what is opportunity cost, including the opportunity cost definition, assessment and examples. See how to calculate opportunity cost using the formula.
Related to this Question
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- Say's law implies that: a. production generates income, which is all spent to purchase what was produced. b. demand creates its own supply. c. markets do not clear. d. demand determines real output.
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- Scarcity, choice, and opportunity cost can be illustrated with the aid of a production possibilities curve (PPC), also called a Production Possibilities Frontier (PPF). In terms of the above statement, discuss the importance of the production possibility
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- Because of increasing opportunity costs, the production possibility curve: a. is bowed out from (or concave to) the origin b. can be either downward- or upward-sloping c. at first rises, then falls e
- To achieve gains from trade, a country: a. needs to have an absolute advantage in the production of all goods. b. specializes in producing a good in which it has a lower opportunity cost. c. must produce at a point beyond its PPF. d. should produce at the
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- The ability of one producer to produce a good at a lower opportunity cost than another producer is called a. a normative statement. b. a zero-sum game. c. absolute advantage. d. comparative advantage. e. the law of increasing relative cost.
- The ability of one producer to produce a good at a lower opportunity cost than another to producer is called: a. a normative statement. b. a zero-sum game. c. absolute advantage. d. comparative advantage. e. the law of increasing relative cost.
- When a production possibilities frontier is bowed outward, as more of one good is produced, its opportunity cost: a. remains constant. b. might increase, decrease, or remain constant depending on how much people value the additional units of the good. c.
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