📚 Learning Guide
Increasing Cost Industries
easy

Increasing cost industries are to market dynamics as scarcity of resources is to ?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Rising production costs

B

Decreased demand

C

Increased competition

D

Constant supply

Understanding the Answer

Let's break down why this is correct

Answer

Increasing cost industries are situations where the costs of producing goods rise as more of those goods are produced. This can happen due to factors like limited resources or higher wages for workers. Similarly, scarcity of resources relates to the idea that when resources are limited, it can drive up their costs and affect how products are made. For example, if a factory needs rare materials to produce a toy and those materials become scarce, the cost to make the toy will increase. Both concepts show how market dynamics can change based on the availability of resources and production needs.

Detailed Explanation

When resources are scarce, it costs more to produce goods. Other options are incorrect because Some might think that fewer resources mean less demand; People might believe that fewer resources lead to more competition.

Key Concepts

Increasing cost industries
Scarcity of resources
Market dynamics
Topic

Increasing Cost Industries

Difficulty

easy level question

Cognitive Level

understand

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