The law of increasing costs states that the opportunity cost of producing a good increases as more of the good is produced.

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The law of increasing costs, also known as the principle of increasing opportunity cost, states that as production of a good expands, the opportunity cost of producing an additional unit of that good increases. This is because resources are not equally efficient in producing every good, so as production shifts towards one good, less efficient resources are used, increasing the cost.

The Law of Increasing Costs States That the Opportunity Cost