Question

Producers must consider how limited a resource is when it is used to create an item. The more scarce a resource is, the greater value is given to that resource. It is important to determine if it is necessary to use a scarce resource to create a good, because a less scarce resource could be used instead. This would make it easier to produce a good, but it would give the final item a lower value.
Which concepts are addressed in your answer? Check all that apply

the idea that scarce resources are more valuable
the idea that less scarce resources are less valuable

Answer 1

Both apply.

- the idea that scarce resources are more valuable — yes
- the idea that less scarce resources are less valuable — yes