________ Opportunity Cost Implies That as More Resources Are Applied

question 279

Multiple Choice

________ opportunity cost implies that as more resources are applied to producing one good, that production increases by smaller and smaller amounts.

• A)Increasing
• B)Decreasing
• C)Constant
• D)Negative

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Definitions:

Inelastic Region

The inelastic region on a demand curve represents a range where a change in price has little to no effect on the quantity demanded of a good or service.

Demand Curve

A graphical representation showing how the quantity demanded of a good or service varies with its price, ceteris paribus.

Consumer Surplus

The differentiation in the total expenditure consumers are willing and have the economic means to allocate for a good or service, versus what they effectively allocate.

Perfect Competition

A market structure characterized by a complete absence of rivalry among firms, where no single firm can influence the market price or product quality, leading to optimal allocation of resources.