Talk:Cost

Is the law of increasing opportunity costs generally recognized to be a real phenomenon? Basically, it says that as an economy shifts production from, say, guns to butter, it starts out by shifting resources that are relatively convertible, but as production gets more and more lopsided toward butter, it ends up shifting resources (e.g. trained gunsmiths) that would have been quite suitable for gun production but are not very suitable to butter production. So the opportunity cost of producing each additional unit of butter increases. Nathan Larson (talk) 00:48, 17 July 2012 (MSD)