The Principle of Increasing Marginal Opportunity Cost Does Not Hold

question 53

Multiple Choice

The principle of increasing marginal opportunity cost does not hold in which of the following cases?

• A)All inputs are equally adaptable to the production of all goods.
• B)Some inputs are more adaptable to the production of certain goods.
• C)Some inputs are less adaptable to the production of certain goods.
• D)Each input is adaptable to the production of a limited number of goods.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for products or services provided on credit.

Withdrawals

Money or assets taken out of a business by its owner(s) for personal use, not considered business expenses.

Fees Revenue

Income earned from providing services, as opposed to selling goods.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated to depreciation expense since the asset was put into use.