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

Question

Quizplus · Accepted Answer

An increasing-cost industry is one where input prices rise as industry output increases, often because the industry is a major buyer of inputs, driving up their prices.

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