law of increasing opportunity cost

Popular Terms
The economic reality of the increasing costs of production caused by the inefficiency of reallocating specialized resources for the production of additional goods for which they are not well suited. For example, the redirection of materials used in the manufacture of refrigerators to the manufacture of cars creates inefficiencies in production.

Use 'law of increasing opportunity cost' in a Sentence

When he wanted to expand the company's products line from five types of coolers to ten, he realized that the law of increasing opportunity cost was firmly rooted against him.
19 people found this helpful
You should make sure that you can keep up with the law of increasing opportunity cost so that you can continue to grow.
17 people found this helpful
Due to the law of increasing opportunity cost, Mary chose to only buy five pairs of shoes, even though they were very cheap, because she realized she still wanted to buy pants.
14 people found this helpful




Email Print Embed