Which of the following statements is true for a long-run supply curve that slopes upward?
A)If total market output is increased, unit costs of production increase.
B)If total market output is unchanged, unit costs of production increase.
C)The total cost of producing 15 units is no larger than the cost of producing 10 units.
D)If total market output is decreased, total costs of production will remain unchanged.

Question

Quizplus · Accepted Answer

An upward-sloping long-run supply curve indicates that as the total output in the market increases, the unit costs of production also increase. This is often due to factors like diminishing returns to scale, increased input prices as demand for inputs rises, or other inefficiencies that occur at higher levels of production.

Which of the Following Statements Is True for a Long-Run