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