Question

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_

Answer 1

Answer:

The opportunity cost of producing the 201st good is more than 5Y.

Explanation:

Opportunity cost is defined as the cost of next best alternative forgone. The law of increasing cost states that as production increases, the opportunity cost does as well.

So the opportunity cost of 201st unit will be more than the opportunity cost of 101st unit which is 5Y.