If the long-run industry supply curve is negatively sloped, then the industry experiences diseconomies of scale.

Question

Quizplus · Accepted Answer

A negatively sloped long-run industry supply curve typically indicates increasing costs as output increases, but this is not necessarily due to diseconomies of scale. It could be due to factors like resource limitations or higher input prices as industry output expands, rather than inefficiencies in production processes.

If the Long-Run Industry Supply Curve Is Negatively Sloped, Then