When does the law of increasing opportunity costs apply?

Question

Quizplus · Accepted Answer

The law of increasing opportunity costs states that as production of one good increases, the opportunity cost of producing an additional unit of that good increases as well. This occurs because resources are not equally adaptable to all potential uses. As more resources are shifted towards the production of one good, resources that are better suited for the production of the other good are depleted, causing the opportunity cost of producing the first good to increase. This law applies when resources are not equally adaptable among potential productive uses.

When Does the Law of Increasing Opportunity Costs Apply