If the Law of Increasing Opportunity Costs Is Operable,and Currently

question 103

Multiple Choice

If the law of increasing opportunity costs is operable,and currently the opportunity cost of producing the 101st unit of good X is 5Y,then the opportunity cost of producing the 201st unit of good is X is most likely to be

• A)less than 5Y.
• B)more than 1/5Y but less than 5Y.
• C)more than 5Y
• D)less than 1/5Y but more than zero.

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Definitions:

Clarify

To make a statement or situation less confused and more comprehensible.

Criterion

A standard or rule by which something can be judged or decided.

Timely Information

Information received or provided at an appropriate time to influence decision-making.

Decision Making

A process of selecting the best option from among various alternatives based on criteria and information.