In a competitive industry where different firms have different cost structures,the industry supply curve is ________.

Question

Quizplus · Accepted Answer

In a competitive industry, different firms will have different cost structures, which means they will have different minimum prices at which they can sell their products or services. As a result, as the price of the product increases, more firms are willing to enter the market and supply the product. This means that, at higher prices, the supply curve is steeper, indicating that more firms are willing to supply the product. Therefore, the industry supply curve is upward sloping.

In a Competitive Industry Where Different Firms Have Different Cost