Question

The primary effect of ______ opportunity costs is less-than-complete specialization.

A. constant
B. increasing
C. decreasing
D. variable

Answer 1

The primary effect of decreasing opportunity costs is less-than-complete specialization.

Step-by-step explanation:

The primary effect of decreasing opportunity costs is less-than-complete specialization. The law of increasing opportunity cost holds that as production of a good or service increases, the marginal opportunity cost of producing it increases as well. This occurs because some resources are better suited for producing certain goods and services than others.