Review Questions and Problems for Chapter 3
a. Increasing opportunity costs arise because resources or factors of production are not homogeneous (i.e., all units of the same factor are not identical or of the same quality) and not used in the same fixed proportion or intensity in the production of all commodities. This means that as the nation produces more of a commodity, it must utilize resources that become progressively less efficient or less suited for the production of that commodity. As a ...


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