-Refer to the above figure. Which panel represents the long-run supply curve for an increasing-cost industry?

Question

Quizplus · Accepted Answer

Panel C represents the long-run supply curve for an increasing-cost industry. This is because, in an increasing-cost industry, as output expands, the costs of production also increase, leading to an upward-sloping long-run supply curve. This reflects the fact that as the industry grows, the inputs necessary for production may become scarcer or more expensive, driving up costs.

-Refer to the Above Figure