The law of increasing opportunity costs: Question 15 options: refutes the principle of comparative advantage. The law of increasing opportunity costs Multiple Choice 02:31:48 applies to land-intensive commodities but not to labor intensive or capital-intensive commodities results in straight-line production possibilities curves rather than curves that are bowed outward from the origin. The law of increasing opportunity cost explains why the shape of the production possibilities curve is: bowed out (concave) from the origin of the graph. As the law says, as you increase the production of one good, the opportunity cost to produce the additional good increases. results in straight-line production possibilities curves rather than curves that are bowed outward from the origin. If, for example, the (absolute) slope at point BB in the diagram is equal to 2, to produce one more packet of butter, the production of 2 guns must be sacrificed. opportunity cost is best defined as: the value of the best forgone alternative. The best way to look at this is to review an example of an economy that only produces two things - cars and oranges. The law of increasing opportunity costs: Answer applies to land-intensive commodities, but not to labor-intensive or capital-intensive commodities. The law of increasing opportunity costs: A) applies to land-intensive commodities, but not to labor-intensive or capital-intensive commodities. Law of Increasing Opportunity Costs Defined. B. results in straight-line production possibilities curves rather than curves that are bowed outward from the origin. refutes the principle of comparative advantage. As production increases, the opportunity cost does as well. ... applies to land-intensive commodities but not to labor-intensive or capital-intensive commodities. The law of increasing opportunity costs: A. applies to land-intensive commodities, but not to labor-intensive or capital-intensive commodities. The law of increasing opportunity cost states that when a company continues raising production its opportunity cost increases. B) results in straight-line production possibilities curves rather than curves that are bowed outward from the origin. Save. This occurs because the producer reallocates resources to make that product. If Econ Isle transitions from widget production to gadget production, it must give up an increasing number of widgets to produce the same number of gadgets. Expert Answer . Increases in resources or improvements will tend to cause a society's production possibilities curve to: C. refutes the principle of comparative advantage. In economics, the law of increasing costs is a principle that states that once all factors of production (land, labor, capital) are at maximum output and efficiency, producing more will cost more than average. If an economy has to sacrifice increasing amounts of good X for each additional unit of good Y produced, then its production possibilities curve is: The law of increasing opportunity costs says that, as we produce more of a particular good, the opportunity cost of producing that good increases. The law of increasing costs holds that the opportunity cost: a. of a good decreases as the quantity of the good produced increases b. of a good is proportional to the resources used in its production c. of a good increases as more of the good is produced d. of a good does not change with the resources used in … If, say, you pay your staff overtime to meet a sudden rush in demand, the added salary cost means your cost per item goes up. 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