The oil industry is an increasing-cost industry because:

Question

Quizplus · Accepted Answer

As the demand for oil increases, the easy-to-reach sources of oil become depleted, forcing producers to seek out new and more difficult sources, such as deepwater drilling or unconventional shale oil deposits. These methods are typically more expensive, causing increasing production costs. The other options, B and C, do not accurately describe the concept of an increasing-cost industry.

The Oil Industry Is an Increasing-Cost Industry Because