Question 64
MediumOriginal questionWhy does the opportunity cost of a good usually rise as more of it is produced?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
The first resources moved into a good are those best suited to it; later ones are less suited.
Less suited resources produce less of the new good for each unit of the old good they stop producing, so the cost rises.
- Concept
- Why opportunity cost rises
- Typical timeTypical
- 70 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Central Problems & the PPC, at your own pace.