If a perfectly competitive industry has a downward sloping long -run supply curve, it suggests that the demand for the industry's product is decreasing over time.

Question

Quizplus · Accepted Answer

A downward sloping long-run supply curve in a perfectly competitive industry suggests increasing returns to scale or input prices decreasing as industry output increases, not necessarily decreasing demand for the product.

If a Perfectly Competitive Industry Has a Downward Sloping Long