The long-run supply curve is upward sloping in an increasing cost industry.

Question

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In an increasing cost industry, the cost of production increases as more output is produced. As a result, firms require a higher price to cover their costs and make a profit. This means that as the quantity supplied increases in the long run, the price needed to produce each additional unit also increases. Therefore, the long-run supply curve is upward sloping.

The Long-Run Supply Curve Is Upward Sloping in an Increasing