In an increasing cost industry, as firms enter the market, average total cost generally _____, and output:

Name: In an increasing cost industry, as firms enter the market, average total cost generally _____, and output:
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In an increasing cost industry, as more firms enter the market, the demand for inputs increases, leading to higher prices for these inputs. This causes the average total cost for each firm to increase. As more firms enter the market, overall market output also increases.

In an Increasing Cost Industry, as Firms Enter the Market