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Increasing marginal opportunity cost implies that
that rising opportunity costs makes it inefficient to produce beyond a certain quantity
the more resources already devoted to any activity, the benefits from allocating yet more resources to that activity decreases by progressively larger amounts
the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.
the law of scarcity
The economic function of profits and losses is to:
bring about a more equal distribution of income.
signal that resources should be reallocated.
eliminate small firms and reduce competition.
tell the government which industries need to be subsidized.
