Q. The law of increasing opportunity costs states that
A) increases in wages cause increases in the costs of production
B) along a production possibilites curve, increases in the production of one good make the production of that good easier and easier
C) along a production possibilities curve, increases in the production of one good require larger and larger sacrifices of the other good
D) costs of production increases and then decreases
✔ Correct Answer: along a production possibilities curve, increases in the production of one good require larger and larger sacrifices of the other good
Exam Insight
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