An increasing-cost industry is so named because of the positive slope of which curve?
A) Each firm's short-run average cost curve
B) Each firm's short-run marginal cost curve
C) Each firm's long-run average cost curve
D) Each firm's long-run marginal cost curve
E) The industry's long-run supply curve

Question

Quizplus · Accepted Answer

An increasing-cost industry is named for the positive slope of the industry's long-run supply curve, indicating that as output increases, the costs of production for the industry also increase. This is typically due to factors like resource depletion or increased input prices as industry output expands.

An Increasing-Cost Industry Is So Named Because of the Positive