If the long-run supply curve of a purely competitive industry slopes upward, this implies that the prices of relevant resources
A)will fall as the industry expands.
B)are constant as the industry expands.
C)rise as the industry contracts.
D)rise as the industry expands.

Question

Quizplus · Accepted Answer

An upward-sloping long-run supply curve in a purely competitive industry suggests that as the industry expands, the prices of relevant resources increase, due to higher demand for those resources or diminishing returns.

If the Long-Run Supply Curve of a Purely Competitive Industry