Increasing Opportunity Cost

Constant Opportunity Cost: Constant opportunity cost refers to a situation where the opportunity cost remains the same regardless of how much of a particular good is produced. It means resources are equally suited for producing different goods.

Law of Increasing Opportunity Cost: The law of increasing opportunity cost states that as production shifts from one good to another, more and more resources that are better suited for producing the initial good must be used, resulting in increasing opportunity costs.

Production Possibilities Curve (PPC): The PPC represents all possible combinations of two goods that can be produced given current resources and technology. It illustrates the concept of scarcity and trade-offs by showing different levels of production efficiency.