A town produces a large number of tires and a small amount of kiwi fruit. as kiwis become more popular, the town decides to grow more kiwis and decrease tire manufacturing. according to the law of increasing costs, _____. the cost of producing tires will decrease the cost of producing kiwis will increase the cost of producing tires will decrease while the cost of producing kiwis will increase the cost of producing kiwis will decrease while the cost of producing tires will increase
The law of increasing costs states that increasing output is a result of higher production costs due to higher production. So, as you increase the production of one good, the opportunity cost to produce the additional good increases. According to the law of increasing costs, if the town decides to grow more kiwis and decrease tire manufacturing, the cost of producing kiwis will increase.
