Chapter 1R, Problem 4MCQ

To determine

The situation which is explained by the increasing opportunity costs.

Explanation of Solution

According to the law of increasing opportunity cost, the opportunity cost of producing an additional good will rise as the output of one good increases.

Time spent by busy people has a significant opportunity cost. Because the time they spend shopping would cost them a higher price, people choose to buy things from convenience stores to save time. As a result, the convenience store, which serves busy individuals, is an example of rising opportunity cost.

Thus, option “d” is correct.

Economics Concept Introduction

Opportunity cost is the next best alternative option that a person chooses. It is the result of choosing one best option while forgoing the next best alternative option.