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Economics

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Pls advise..

The max units of good A is 180
The max units of good B is 60

In general terms, what happens to the opportunity cost of good A as the output of good A increases?

In general terms, what happens to the opportunity cost of good B as the output of good B increases?

  • Economics - ,

    In production, the law of diminishing returns tells us that the opportunity cost of producing another unit of something keeps increasing as more and more of that item is produced.

    The answer to both is that the opportunity costs increase.

    Check out this site for more insights.
    http://en.wikipedia.org/wiki/Production_theory_basics

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