Using the factors of production to make one product always means that _____.

Question

it is possible to make too many of that product

a nation can make more money

fewer resources are left to make something else

a company may experience a shortage of materials

Answer 1

Using the factors of production to make one product always means that fewer resources are left to make something else.

This concept highlights the idea of opportunity cost, where dedicating resources (land, labor, capital, and entrepreneurship) to the production of one good reduces the ability to produce other goods.