Microeconomics,, 16th Canadian Edition

(Sean Pound) #1

suited to the production of consumption goods, like arable agricultural
land. As we produce more and more investment goods (by devoting more
and more resources to producing them), the amount of consumption
goods that must be forgone to produce one extra unit of investment goods
rises. That is, the opportunity cost of producing investment goods rises as
more of them are produced.

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