Which of the Following Is True About Increasing Cost Industries

question 126

Multiple Choice

Which of the following is true about increasing cost industries?

• A) They use a large portion of available specialized input resources in production.
• B) In order for industry output to expand, the prices of the specialized inputs will increase.
• C) Expansion of industry output leads to a higher equilibrium price in the long run.
• D) All of the above are generally true of increasing cost industries.

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Definitions:

Confronting Challenges

The process of facing and seeking solutions to obstacles or difficulties.

Delabeling

The process of removing or challenging negative or stigmatizing labels associated with individuals or groups.

Attributing Blame

The process of assigning responsibility for a fault or wrong to a person or group.

Competitive Struggles

Situations marked by rivalry or contention where individuals or groups compete against one another to achieve certain goals or outcomes.