As more of a good, such as television sets, is produced, the opportunity costs of producing it increases. This most likely occurs because
◦ as more of a good is produced, the inputs used to produce that good will increase in price.
◦ consumers would be willing to pay higher prices for the good as more of the good is produced.
◦ resources are not equally well suited to producing all goods, and as more of a good is produced, it is necessary to use resources less well suited to the production of that good.
◦ as more of a good is produced, the quality of that good declines, and therefore the costs of production increase.