If an industry's long-run supply curve is upward sloping, the industry is characterized by:

Question

Quizplus · Accepted Answer

An upward sloping long-run supply curve indicates that as the industry increases production levels, the cost of producing each unit of output increases. This suggests that the industry is characterized by increasing cost as opposed to decreasing cost or constant cost. The option of high overhead cost may or may not be related to the shape of the long-run supply curve, so it cannot be determined based on this information alone.

If an Industry's Long-Run Supply Curve Is Upward Sloping, the Industry