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.

---

Definitions:

Consultant's Fee

Payments made to an expert for providing professional advice or services.

Computer Equipment

Computer equipment encompasses the physical parts of a computer system, including the central processing unit, monitor, keyboard, and mouse, among other components.

Construction Loan

Short-term financing used to cover the cost of building or renovating a property until long-term financing can be secured.

Expense Account

A ledger account that represents all costs or expenses incurred by a company during a specific period, impacting the income statement's net income.