In an increasing-cost industry, expansion of output:

A) causes input prices to rise as demand for them grows.
B) leaves input prices constant as input demand grows.
C) causes economies of scale to occur.
D) occurs under conditions of increasing returns to scale.
E) occurs without diminishing marginal product.

Increasing-cost Industry

An Increasing-cost Industry is one where the input costs increase as the industry's output expands, typically due to the scarcity of some inputs or increased demand for them.

Input Prices

The costs associated with the inputs used in the production process, such as labor, raw materials, and capital.

Economies of Scale

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.