Which of the following is NOT a characteristic of an increasing cost competitive industry? As the industry expands output in the long run,

Question

Quizplus · Accepted Answer

In an increasing cost competitive industry, as the industry expands output in the long run, the prices of some inputs rise and the long-run average cost of production increases at every level of output. The number of firms may increase or decrease depending on the industry. However, the equilibrium price of product does not remain constant in the long run, as it increases due to the rising costs of production. Therefore, choice A is not a characteristic of an increasing cost competitive industry.

Which of the Following Is NOT a Characteristic of an Increasing