The long-run supply curve for a decreasing-cost industry is downsloping.

Name: The long-run supply curve for a decreasing-cost industry is downsloping.
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Question

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In a decreasing-cost industry, as output increases, the costs of production per unit decrease, leading to a downward-sloping long-run supply curve. This is because the industry benefits from economies of scale, improved technology, or other factors that reduce costs as production expands.

The Long-Run Supply Curve for a Decreasing-Cost Industry Is Downsloping