The states that the opportunity cost of producing a good always rises as one produces more of it. a. law of increasing relative cost b. law of positive economics c. law of demand d. production possibilities frontier (ppf) model game

a. law of increasing relative cost

Explanation:

In economics, the law of increasing costs is a theory which states that once all production factors (land, labour, capital) are at maximum output, it will cost more than average to produce.

As production increases, the opportunity cost will also increase.

In such a nut-shell, markets and countries are trying to strike a balance on how to handle resources whilst using the goods to achieve the best possible productivity and revenue.

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