Concept that states as production switches from one good to another more & more resources are necessary to increase producti
on of the second good. This is because not all resources are equally suited for all tasks thusly it takes more of the ill suited resource to produce what less of best suited resources could. *
The law of increasing costs is a rule in economic science, according to which with increasing production of the product the opportunity costs also increase, that is, with the production of each new unit of product, the costs of producing this additional unit of product also increase.
Opportunity costs are the number of products that must be sacrificed in the production of any quantity of other products. And the law of increasing costs states that the production of an additional unit of product 1 leads to an increase in the number of refusals to produce product 2.
The king is basically giving them a license to start a colony. It's like how you can't drive a car unless you have a drivers license, but with colonies.
A country would want to get a larger military to overpower or to stand ground against other counties. "Problems" that this could cause to a nation is to be over militarized and not care about its citizens, problems to surrounding nations is that they would feel threatened by a larger military.
