“As we increase the production of one good, the

opportunity cost to produce the additional good will also increase”, this is stated in

A Principle of combining enterprise Correct Answer Incorrect Answer

B Law of increasing opportunity cost Correct Answer Incorrect Answer

C Law of comparative advantage Correct Answer Incorrect Answer

D Law of variable proportions Correct Answer Incorrect Answer

Solution

The law of increasing opportunity cost states that as we increase the production of one good, the opportunity cost to produce the additional good will also increase. Opportunity cost is the value of the next-best alternative when a decision is made. It is also known as alternate cost.

Practice Next

More Agri Engineering Questions