Assuming That Resources Are Specialized, the Opportunity Cost of an Item

question 194

Multiple Choice

Assuming that resources are specialized, the opportunity cost of an item increases as production of it rises.Therefore, we expect that firms will produce more if

• A)the price increases.
• B)the price decreases.
• C)the opportunity cost is greater than the price.
• D)government asks firms to produce more.
• E)the income of buyers increases.

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