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 incr?

According to the law of increasing opportunity cost, as the town shifts resources from tire manufacturing to kiwi production, the opportunity cost of producing additional kiwis will rise. This occurs because the town must allocate increasingly valuable resources away from tire production, leading to a decrease in tire output that may not be proportional to the increase in kiwi production. Consequently, the trade-off between the two goods reflects diminishing returns, making it more costly to produce additional kiwis as more resources are diverted.