In a decreasing cost industry, as prices rise due to an increase in demand, profits initially:

Name: In a decreasing cost industry, as prices rise due to an increase in demand, profits initially:
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In a decreasing cost industry, as demand increases and prices rise, firms initially experience an increase in profits because their costs of production decrease as output increases, allowing them to benefit from higher prices without a proportional increase in costs.

In a Decreasing Cost Industry, as Prices Rise Due to an Increase