Assume that a decreasing-cost industry experiences an increase in demand. In the long run, this will

Name: Assume that a decreasing-cost industry experiences an increase in demand. In the long run, this will
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In a decreasing-cost industry, as output increases, the costs of production per unit decrease. Therefore, if there is an increase in demand, the industry can produce more at a lower cost, which typically leads to a decrease in price in the long run.

Assume That a Decreasing-Cost Industry Experiences an Increase in Demand