Assume that the tuna fishing industry is perfectly competitive.Which of the following best characterizes the industry if, as demand for tuna increases, fishing boats have to go farther into the ocean to harvest tuna?

Question

Quizplus · Accepted Answer

As fishing boats have to go farther into the ocean to harvest tuna, the cost of production will increase due to the additional resources required for the longer distance traveled. Thus, it is likely that the industry will experience increasing costs.

Assume That the Tuna Fishing Industry Is Perfectly Competitive