The long-run supply curve for a increasing-cost industry is downward sloping.

Question

Quizplus · Accepted Answer

The long-run supply curve for an increasing-cost industry is actually upward sloping. This is because as demand for the industry's product increases, the cost of production also increases due to factors such as rising input prices and decreasing availability of resources. As a result, the industry needs higher prices to bear these rising costs, and this is reflected in an upward sloping long-run supply curve.

The Long-Run Supply Curve for a Increasing-Cost Industry Is Downward