Costs increase with output in an increasing-cost industry because:
A. input prices increase as the industry competes for scarce resources.
B. firms may be forced to use less productive inputs.
C. the firms become monopolies.
D. Both A and B are correct.
Answer:D
Costs increase with output in an increasing-cost industry because:
A. input prices increase as the industry competes for scarce resources. B. firms may be forced to use less productive inputs. C. the firms become monopolies. D. Both A and B are correct.