As we produce more of one good, economists think that we must give up increasing amounts of another good. For


As we produce more of one good, economists think that we must give up increasing amounts of another good. For example if car production is increased from 200 to 400 units, the sacrifice (opportunity cost) in terms of the other good will be less than when car production is increased from 400 to 600 units. Why wouldn’t opportunity costs stay the same? In other words, shouldn’t an additional 200 cars cost the same regardless of whether car production increases from 200 to 400, or 400 to 600?


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