Question

Why expect to see increasing opp costs in the real world?

Answer 1

The law of increasing opportunity cost states that as production increases, the marginal opportunity cost also increases. This is because certain resources are better suited for producing certain goods and services. As more resources are allocated to a specific production, the cost increases.

Step-by-step explanation:

The law of increasing opportunity cost states that as production of a good or service increases, the marginal opportunity cost of producing it also increases. This is because some resources are better suited for producing certain goods and services, leading to a higher cost when producing more. For example, when the government spends more on reducing crime, the initial increase in opportunity cost may be relatively small, but as more resources are allocated to this effort, the cost increases.