Final answer:
The law of supply and opportunity cost are related as an increase in production leads to an increase in opportunity cost. When more resources are allocated to producing a particular good, the opportunity cost of producing other goods decreases. This relationship is known as the law of increasing opportunity cost.
Step-by-step explanation:
The law of supply and the concept of opportunity cost are closely related in economics. The law of supply states that as the price of a good or service increases, the quantity supplied increases as well. Opportunity cost, on the other hand, refers to the value of the next best alternative that is given up in order to obtain something else.
When a producer decides to allocate more resources towards producing a particular good or service, they are faced with the opportunity cost of producing fewer units of other goods or services. For example, if a company decides to produce more smartphones, the opportunity cost may be the foregone opportunity to produce more tablets. As the production of smartphones increases, the opportunity cost of producing additional units of smartphones becomes higher.
In summary, the law of supply and opportunity cost are related because as production increases, the opportunity cost of producing additional units of a good or service also increases.