Question

What is the name of the law that states that as we shift factors of production from making one good or service to another, the cost of producing the second item increases?

Answer 1

I did some research and found out it is the law of increasing costs
:)

Answer 2

Answer:

Law of increasing costs

Explanation:

The law of increasing costs states that when the production of a product increases, the costs also rise. They increase because when the production rises, you require more factors of production that are land, labor, capital and entrepreneurship. The amount of factors you need can cause that when you increase your production, the costs and the earnings increase at different rates which can decrease your profit margin.