Explain: The law of increasing additional cost is an inevitable ...

[amal]

Explain: The law of increasing additional cost is an inevitable phenomenon in economics.
 
  What will be an ideal response?

Question 2

Refer to the above figure. Which panel demonstrates the law of supply?
 
  A) Panel A
  B) Panel B
  C) Panel C
  D) Panel D

[janeli1]

Answer to Question 1

Economic resources are seldom suitable for all types of production. Hence, when society demands more of a particular good or service, an increase in the demand for the resources most adaptable to its production will rise; as more of the good is produced, eventually less efficient inputs will be pressed into production. It is the utilization of these less efficient inputs that gives rise to higher societal cost of production.

Answer to Question 2

B