Question

The law of increasing opportunity costs states that Group of answer choices increases in the production of one good require larger and larger sacrifices of the other good. costs of production increase for one good, but costs decrease for the other good. increases in the production of one good make the production of that good easier. increases in wages and other resource costs is what the increasing opportunity costs refer to

Answer 1

Answer:

Increases in the production of one good require larger and larger sacrifices of the other good

Explanation:

Option first is correct because the opportunity cost refers to the sacrifice of another commodity in order to increase the production of one commodity. For example, if a country produces two commodities that are wheat and paddy. So if the country wants to increase the production of wheat then it has to decrease the production of paddy. Thus, the magnitude of decrease of paddy is the opportunity cost of wheat. Therefore, option A is correct.