A decreasing-cost industry has a downward-sloping:
A) long-run average cost curve.
B) long-run marginal cost curve.
C) short-run average cost curve.
D) short-run marginal cost curve.
E) long-run industry supply curve.

Question

Quizplus · Accepted Answer

In a decreasing-cost industry, as output increases, the costs of production for firms decrease, leading to a downward-sloping long-run industry supply curve. This is because external economies of scale are realized as the industry expands, reducing the cost per unit for all firms in the industry.

A Decreasing-Cost Industry Has a Downward-Sloping