The law of increasing costs means that as production shifts from one item to another:

a. the cost of production gets cheaper and cheaper.

b. the cost of producing an item stays the same no matter how many are produced.

c. more and more resources are necessary to increase production of the second item.

d. the land costs of increasing production rise much more steeply than do the labor costs.

Question

Elizabeth Wheeler

Business

26 October, 15:03

The law of increasing costs means that as production shifts from one item to another:

a. the cost of production gets cheaper and cheaper.

b. the cost of producing an item stays the same no matter how many are produced.

c. more and more resources are necessary to increase production of the second item.

d. the land costs of increasing production rise much more steeply than do the labor costs.

+4

Answers (2)

Know the Answer?

Stacy Wolf · Answer 1

The answer is C. more and more resources are necessary to increase production of the second item

Because once all factors of production are at maximum output, producing more products will cost more than average (because we need to add more resources)

Carter Mullins · Answer 2

Carter Mullins 26 October, 15:16

0

The answer would be C).