If a perfectly competitive industry uses a large proportion of the available inputs in a resource market, what shape is the long-run market supply curve for the industry most likely to be?

Question

Quizplus · Accepted Answer

In a perfectly competitive industry, if a large proportion of available inputs is used, it implies that as output increases, the cost of inputs will likely rise due to increased demand for these inputs. This scenario leads to an upward sloping long-run market supply curve, reflecting increasing costs as the industry expands.

If a Perfectly Competitive Industry Uses a Large Proportion of the Available