In a market with external economies, the long- run supply curve is negatively sloped because

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External economies refer to situations where a firm's costs decrease as the industry's output increases, often due to factors like improved technology, better infrastructure, or a more skilled labor force becoming available as the industry grows. This leads to a negatively sloped long-run supply curve, as increased production in the market lowers costs for firms.

In a Market with External Economies, the Long- Run Supply