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LAW OF INCREASING OPPORTUNITY COST Definition & Legal Meaning

Definition & Citations:

Observation: Increasing production costs are an economic reality when a company changes its product line to take advantage of some economic opportunity. This is caused by inefficiencies in retooling and reallocating specialized resources to make the additional product, Prior lines are not well suited. As an example, redirecting materials for refrigerator manufacture to car manufacture brings production inefficiencies.

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