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

Business

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19 April, 19:47

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.

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Answers (2)

Know the Answer?

Kasen Brennan · Answer 1

The answer would be C).

Adams · Answer 2

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)