CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

When you produce wheat, it is relatively inexpensive to produce it initially, but per unit costs tend to increase as more is produced. This is an example of ______.

A. increasing marginal opportunity costs
B. decreasing marginal opportunity costs
C. constant marginal opportunity costs
Correct Answer: A

If the marginal cost of producing additional wheat rises as more wheat is produced, then the opportunity cost rises at an increasing rate.

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