Suppose that an industry's long-run supply curve is downsloping. This suggests that
A)it is an increasing-cost industry.
B)relevant inputs have become more expensive as the industry has expanded.
C)technology has become less efficient as a result of the industry's expansion.
D)it is a decreasing-cost industry.

Question

Quizplus · Accepted Answer

A downsloping long-run supply curve indicates that as output increases, the cost per unit decreases, which is characteristic of a decreasing-cost industry. This typically occurs due to factors like improvements in technology or increased efficiency as the industry scales up.

Suppose That an Industry's Long-Run Supply Curve Is Downsloping