Which of the Following Is Most Likely to Be an Increasing-Cost

question 8

Multiple Choice

Which of the following is most likely to be an increasing-cost industry?

• A)An industry whose firms experience diseconomies of scale
• B)An industry whose firms experience economies of scale
• C)An industry that is a major buyer in the markets for the inputs it uses
• D)An industry that is a very small buyer in the markets for the inputs it uses
• E)An industry that is a major seller in the markets for its outputs