Question

All inputs in a business are not equally productive at all activities. As the business increases its? output, marginal opportunity cost

A. increases.
B. is constant.
C. decreases but eventually increases.
D. increases but eventually decreases.
E. decreases.

Answer 1

Marginal opportunity cost increases as a business increases its output because not all inputs are equally productive. The cost of using additional resources may rise as a business expands its production.

Step-by-step explanation:

The concept in this question relates to economics and marginal opportunity cost. As a business increases its output, marginal opportunity cost increases. This is because not all inputs in a business are equally productive in all activities. As the business expands its production, it will need to allocate more resources, and the cost of using these additional resources may increase.