Which statement is correct? The long-run supply curve for a purely competitive
A)decreasing-cost industry will be upward sloping.
B)increasing-cost industry will be perfectly elastic.
C)increasing-cost industry will be upward sloping.
D)increasing-cost industry will be less elastic than the short-run supply curve.

Question

Quizplus · Accepted Answer

In a purely competitive increasing-cost industry, the long-run supply curve is upward sloping because as industry output increases, the prices of inputs or factors of production tend to increase, leading to higher costs and prices.

Which Statement Is Correct? the Long-Run Supply Curve for a Purely