As one industry expands, the expanding industry’s increased use of resources means that

  • those resources are taken away from other industries, resulting in increasing marginal costs.
  • there will be an overall decrease in exports, which will increase the price of domestic products.
  • additional resources will have to be found to satisfy the increased need and costs will probably decrease.
  • the cost of the resources used by that industry will decrease and the cost of producing the product will increase.

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