The law of increasing costs means that as production shifts from one item to another,
A. the cost of production gets cheaper and cheaper.
B. the cost of producing an item stays the same no matter how many are produced.
C. more and more resources are necessary to increase production of the second item.
D. the land costs of increasing production rise much more steeply than do the labor costs.
C?
C yes, better stated the opportunity costs increase with each produced item.
Thanks bob :)
Yes, you are correct. The law of increasing costs states that as production shifts from one item to another, more and more resources are necessary to increase the production of the second item. This means that the cost of production increases as more resources are required. So option C is the correct answer.
To arrive at this answer, you can analyze the concept behind the law of increasing costs. It is based on the principle of diminishing marginal returns, which states that as you increase the production of a particular item, the additional output you get from each additional unit of input decreases. In other words, it becomes increasingly difficult to produce more of one item without sacrificing the production of another.
As you produce more of one item, you may need to reallocate resources from the production of the first item to the second item. This reallocation could mean utilizing less-efficient resources or investing more in acquiring additional resources, leading to higher costs. Therefore, it follows that more and more resources are necessary to increase the production of the second item, which is captured by option C.