If factor prices rise as demand increases and the firms expand output, the long-run market supply curve will be upward sloping. In terms of economics, this describes
A) an oligopolistic industry.
B) a constant cost industry.
C) an increasing cost industry.
D) a decreasing cost industry.

Question

Quizplus · Accepted Answer

In an increasing cost industry, as firms expand output due to increased demand, factor prices rise, leading to an upward sloping long-run supply curve.

If Factor Prices Rise as Demand Increases and the Firms