Explain the concept of the law of increasing additional cost
What will be an ideal response?
The law of increasing relative cost is the fact that the opportunity cost of additional units of a good increases as society tries to produce more of that good. This accounts for the bowed-out shape of the production possibilities curve.
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An advantage monetary policy has over fiscal policy is that monetary policy
A) can be quickly changed and implemented. B) is coordinated with fiscal policy. C) is approved by the president of the United States. D) affects consumption expenditure and investment without impacting international trade. E) has no multiplier effects.
Under J.C. Penney's everyday low pricing policy, the everyday low prices
A) were always lower than the sale prices under the previous policy. B) ended up being the highest prices ever charged by the company. C) ended up being higher than the sale prices under the previous pricing policy. D) were not actually charged every day, but only once a month during half-off sales.