When industry expansion causes input prices to rise, we call this
A)external diseconomies of scale.
B)the law of increasing costs.
C)internal diseconomies of scale.
D)increasing returns.
E)diminishing returns.

Question

Quizplus · Accepted Answer

External diseconomies of scale occur when an industry's expansion leads to higher input costs for companies within the industry, often due to increased demand for inputs and resources.

When Industry Expansion Causes Input Prices to Rise, We Call