Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose 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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