Multiple Choice
The graph above represents a(n) :
A) decreasing-cost industry: firms may be paying lower prices for their inputs when the industry expands.
B) increasing-cost industry: firms may be paying higher prices for their inputs when the industry expands.
C) competitive, break-even industry: the long-run supply curve is upward sloping as it must be according to the law of supply.
D) constant-cost industry: prices of the inputs stay the same, and other production costs are constant as the industry expands.
Correct Answer:
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