1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ad-work [718]
3 years ago
12

A country has two main products: hats and grapes. The country decides to start making more and more hats and fewer and fewer gra

pes. Why does the opportunity cost of making hats increase as more and more hats are produced?
Business
1 answer:
Dmitriy789 [7]3 years ago
8 0

Answer:

Because as more hats are produced less grapes can be produced.

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

There are two commodities that can be produced by the country- hats and grapes.

If the country decides to increase production of hats, it has to reduce the quantity of hats that can be produced, therefore the opportunity cost increases.

Explanation:

For example, let assume a country can produce 30 grapes and 30 hats. If it decides to increase the amount of hats produced to 40, only 20 grapes can be produced. If it decides to increase to 50 hats only 10 grapes would be produced and if it decides to produce 60 hats, no grapes would be produced.

It can be seen that opportunity cost increases as more hats are produced

I hope my answer helps you

You might be interested in
Often, it is difficult to name a home country for a(n) ________ business
velikii [3]
Small business is difficult in the economy because its self made

8 0
3 years ago
How are business entrepreneurs and social entrepreneurs different?
julia-pushkina [17]

Both approaches fulfill a need in the market and aim to earn a sustainable profit. The main difference is that social entrepreneurship focuses beyond simply generating a profit, and measures its performance on the positive impact the business makes on society – whether social, cultural or environmental.

5 0
2 years ago
Read 2 more answers
How are prices determined in a free market economy​
professor190 [17]
If it’s free then I don’t think they need to determine the price bc it’s free
5 0
2 years ago
Which of the following insurance types will cover the possessions inside your home?
OleMash [197]
I wanna think prob  full coverage home owners insurance 
4 0
3 years ago
When you borrowed $50 from your rich cousin, and then had to pay her back $60, what is the original $50 called? a) Bribery b) In
alexira [117]
The correct answer is C. 100%. Please mark as brainliest! :) Have a blessed day!
7 0
2 years ago
Other questions:
  • Which career is best suited for people who have a high school diploma
    15·1 answer
  • The first step in process flow analysis is:
    13·1 answer
  • Moose Industries has a corporate tax rate of 25%. Last year the company realized $14,000,000 in operating income (EBIT). Its ann
    14·1 answer
  • Suppose you have drawn a consumer's budget line for food and clothing, with food on the x-axis. Which of the following events wo
    15·1 answer
  • Eugene and Velma are married. For 2019 Eugene earned $25,000 and Velma earned $10,000. What are Eugene's and Velma's taxable inc
    10·1 answer
  • Lyman's business has grown to 400 employees with annual revenues of $15 million. He would like to expand further but needs anoth
    10·1 answer
  • Armour, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was esti
    13·1 answer
  • Define corporate culture. What are the components of a good corporate culture? Why do you think that corporate culture has such
    5·1 answer
  • Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $2
    7·1 answer
  • You are planning to save for retirement over the next 44 years. To do this, you will invest $500 a month in a stock account and
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!