abstract:In economics, the law of increasing costs is a principle that states that once all factors of production (land, labor, capital) are at maximum output and efficiency, producing more will cost more than average. As production increases, the opportunity cost does as well.
By avoiding the health care reform law through paying less to his employees as a result of cutting back their hours, Schnatter is only increasing the costs that you and I pick up when his employees having no health insurance show up at the emergency room for basic care because they have nowhere else to go.