The law of increasing costs is based on each of the following,except
A)the law of scarcity.
B)the law of diminishing returns.
C)diseconomies of scale.
D)factor suitability.

Question

Quizplus · Accepted Answer

The law of increasing costs primarily relates to the law of diminishing returns and factor suitability, where resources become less efficient as production increases. It also involves diseconomies of scale, where costs increase as a firm becomes too large. The law of scarcity, while fundamental to economics, does not directly explain the law of increasing costs, which is more about how costs rise with increased production due to factors like inefficiencies and resource limitations.

The Law of Increasing Costs Is Based on Each of the Following,except