The Law of Increasing Cost is based upon which of the following?
A)If units of a resource are added to a fixed proportion of other resources,eventually marginal output will decline.
B)Economies of scale eventually outweigh diseconomies of scale.
C)Resources become more suitable for use in the production process as the output of one good expands.
D)All of the choices are true.

Question

Quizplus · Accepted Answer

The Law of Increasing Cost states that if units of a resource are added to a fixed proportion of other resources, eventually marginal output will decline. This means that as more resources are added, the cost of producing additional units will increase, leading to decreasing returns.

The Law of Increasing Cost Is Based Upon Which of the Following