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Question
the opportunity cost of a good increases as more of it is produced because
o resources are not equally productive in all activities.
o producing more of a good requires additional resources.
o there is no such thing as a free lunch.
o the number of forgone alternatives also increases.
o people want the good less as more is produced.
Opportunity cost is the value of the next - best alternative forgone. Resources have different productivities in different uses. As more of a good is produced, resources less suited to its production are employed, increasing the opportunity cost. For example, if a farmer uses land for wheat production, as more wheat is grown, the farmer may have to use less suitable land, giving up more of other possible crops.
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resources are not equally productive in all activities.