The owner of a clothing factory wants to make more winter coats. According to the law of increasing costs, what will happen next?

A. The factory owner will have to give something up to make more costs.
OR
B. The cost of making winter coats will stay the same.

A. The factory owner will have to give something up to make more costs.

According to the law of increasing costs, the answer is A. The factory owner will have to give something up to make more coats.

The law of increasing costs states that as production of a particular good increases, the opportunity cost of producing that good also increases. In this case, as the factory owner wants to produce more winter coats, they will have to allocate additional resources such as labor, materials, and time towards the production of these coats. This means that the owner may have to give up producing other products or reduce the production of other goods in order to meet the increased demand for winter coats. Consequently, the cost of producing winter coats will increase due to the necessity of giving up alternative production possibilities.