The law of increasing opportunity costs

Question

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The law of increasing opportunity costs states that as a nation specializes in producing a particular product, the opportunity cost of producing each additional unit of that product increases. This implies that resources are better suited to producing some goods rather than others, and may limit the extent to which a nation can specialize in producing a particular product. However, it does not apply to only land-intensive commodities, nor does it result in straight-line production possibilities curves. Furthermore, it supports rather than refutes the principle of comparative advantage, which suggests that countries should specialize in producing goods in which they have a lower opportunity cost.

The Law of Increasing Opportunity Costs