Why will the long-run market supply curve for most products slope upward to the right?
A) The firms producing the product will be unable to expand the size of their plant and equipment in the long run.
B) Economies of scale are present in most industries.
C) Most products are produced under conditions of constant cost.
D) Resource prices will rise and push costs upward as the output of the industry expands.

Question

Quizplus · Accepted Answer

In the long run, as the industry expands, increased demand for resources can lead to higher resource prices, which raises production costs and causes the supply curve to slope upward.

Why Will the Long-Run Market Supply Curve for Most Products