Which of the following statements describes the law of increasing costs?
A)As the quantity produced of any particular item decreases,its per unit cost of production rises.
B)As the quantity produced of any particular item increases,its per unit cost of production rises.
C)The prices of consumer goods and services always rise and never fall.
D)If you wait to make a purchase,you will pay a higher price.
E)The total cost of production rises as output goes up.

Question

Quizplus · Accepted Answer

The law of increasing costs states that as the quantity produced of any particular item increases, its per unit cost of production rises. This is due to factors like scarcity of resources, limited availability of skilled labor, and limited technology. As production increases, more resources are required, and their scarcity increases, leading to higher costs of production.

Which of the Following Statements Describes the Law of Increasing