As resources are not perfectly adaptable to the production of both Good A and Good B, _____.

Social Studies

1 answer:

kotykmax [81]2 years ago

7 0

Answer:

the opportunity cost of A increases as production of A increases

Explanation:

Under normal condition, the production of a good is determined by the opportunity cost. The choice of good to be produced is determined by how low its opportunity cost is. The lower the opportunity cost, the more realistic it is to produce that goods.

In a situation where the resource available is not perfectly adaptable to the production of product A and B. The opportunity cost of producing either product A or product B will increase as their production increases. This is because since the resources are not perfectly adaptable for their production, more capital will be spend in their production, for example, by trying to convert the resource available to a material that will best suit the production of good A.

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