The law of increasing opportunity costs: . refutes the principle of comparative advantage. b. applies to land-intensive commodities but not to labor-intensive or capital-intensive commodities. c. may limit the extent to which a nation specializes in producing a particular product. d. results in straight-line production possibilities curves rather than curves that are bowed outward from the origin.

The correct answer is option c.

Explanation:

The law of increasing oportunity costs means that as we go on substituting production of one good for another the opportunity cost of sacrificing the alternative will go on increasing. That is whythe prodcution possibilty curve is concave and bowed outward.

Because of increasing opportunity costs, there is a limit to specialization of antions in production of a commodity. As they go on producing the goods they specialize in, the opportunity cost of giving up the alternative goes on increasing.

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