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Which Statement Is True

Question 1

Multiple Choice

Which statement is true?


A) In an increasing-cost industry, a firm's long-run supply curve is perfectly elastic at the minimum of ATC and the long-run industry supply curve is upward sloping.
B) In an increasing-cost industry, a firm's long-run supply curve is upward sloping and the long run industry supply curve is also upward sloping.
C) In a decreasing-cost industry, a firm's long-run supply curve is upward sloping and the long-run industry supply curve is perfectly elastic at the minimum of ATC.
D) In an increasing-cost industry, a firm's long-run supply curve is upward sloping and the long-run industry supply curve can either be perfectly elastic or upward sloping, depending on the circumstances.
E) None of the above.

Correct Answer:

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