The law of increasing costs indicates that
a. as more goods are produced, the dollar cost of producing those goods increases
b. no matter how many goods you produce, costs tend to increase
c. the opportunity cost of producing a good increases as more of the good is produced
d. although total cost may increase as you produce more of a good, the opportunity cost of producing additional units of the good actually decreases
e. because you are able to adopt greater division of labor when producing more goods, the opportunity cost of producing a good increases as less of the good is produced
C
You might also like to view...
Refer to the figure below. Assume demand remains unchanged at D1. If supply shifts from S1 to S2, then the equilibrium price will ________ and the equilibrium quantity will ________. 
A. fall; fall B. fall; rise C. rise; fall D. rise; rise
The real interest rate is calculated as the
a. expected rate of inflation divided by the nominal interest rate b. real GDP plus the expected rate of inflation c. nominal interest rate minus real GDP d. nominal interest rate minus the expected rate of inflation e. real GDP multiplied by the expected rate of inflation
Approximately what percentage of state and local expenditures do bond referenda account for?
A. 25 percent. B. 50 percent. C. 10 percent. D. Less than 1 percent.
Assume both the marginal cost and the average variable cost curves are U-shaped. At the minimum point on the AVC curve, marginal cost must be:
A. greater than the average variable cost. B. ?less than the average variable cost. C. ?equal to the average variable cost. D. ?at its minimum.