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Assuming That Resources Are Specialized, the Opportunity Cost of an Item

Question 140

Multiple Choice

Assuming that resources are specialized, the opportunity cost of an item increases as the production of it rises.This implies that firms will produce more as


A) the price increases.
B) the price decreases.
C) the opportunity cost is greater than the price.
D) government asks firms to produce more.
E) the income of buyers increases.

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