The accompanying graph shows the long-run supply and demand curves in a purely competitive market. The curves suggest that this industry is
A)a constant-cost industry.
B)an increasing-cost industry.
C)a decreasing-cost industry.
D)not possible, because the supply curve always slopes up.

Question

The accompanying graph shows the long-run supply and demand curves in a purely competitive market. The curves suggest that this industry is
A)a constant-cost industry. 
B)an increasing-cost industry. 
C)a decreasing-cost industry. 
D)not possible, because the supply curve always slopes up.

Quizplus · Accepted Answer

The Answer of  The accompanying graph shows the long-run supply and demand curves in a purely competitive market. The curves suggest that this industry is
A)a constant-cost industry. 
B)an increasing-cost industry. 
C)a decreasing-cost industry. 
D)not possible, because the supply curve always slopes up.

The Accompanying Graph Shows the Long-Run Supply and Demand Curves