The law of increasing costs says that as factors of production are shifted from making one good or service to another,
A. the cost of producing the second good or service first decreases and then levels out.
B. the cost of producing the second good or service increases.
C. the cost of producing the second good or service decreases.
D. the cost of producing the second good or service remains the same
ANSWER: B. the cost of producing the second good or service increases.
law that states that as we shift factors from making one good or service to another, the cost of producing the second item increases is called the law of increasing
