Question

If resources are abundant, then opportunity costs will be _________.

• A. Infinity
• B. increasing trend
• C. decreasing trend
• D. zero

Answer 1

Answer: (D)

zero

If resources are abundant then while producing extra unit of a commodity the producer does not has to shift resources from production of another commodity and there will be no decrease in the production of another commodity. So the opportunity cost will remain the zero in this case.