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:

Corporate Disclosure Requirements

Regulations mandating that corporations publicly disclose certain financial and business information to maintain transparency with shareholders and the public.

Sarbanes-Oxley Act

A law enacted in response to a number of major corporate and accounting scandals to protect shareholders and the general public from accounting errors and fraudulent practices in enterprises.

Securities And Exchange Commission

A U.S. government agency responsible for regulating the securities industry, enforcing federal securities laws, and overseeing the stock and options exchanges.

Due Diligence

A comprehensive appraisal or investigation of a business or person prior to signing a contract, or an act with a certain standard of care.