Answer to Question #81640 in Microeconomics for Danijha

Question

Does the principle of “increasing opportunity cost” hold
in this nation? Explain briefly. (Hint: What happens to
the opportunity cost of carpet—measured in number of
looms—as carpet production increases?)

Answer 1

The opportunity cost of carpet—measured in number of looms— will increase as carpet production increases due to the inadaptability of the resources.
So, the principle of “increasing opportunity cost” holds in this nation.