An increasing-cost industry is the result of
A)higher resource prices that occur as the industry expands.
B)a change in the industry's minimum efficient scale.
C)X-inefficiency.
D)the law of diminishing returns.

Question

Quizplus · Accepted Answer

An increasing-cost industry experiences higher resource prices as it expands, leading to an increase in costs. This is often due to the increased demand for resources within the industry, which drives up prices.

An Increasing-Cost Industry Is the Result of