If a perfectly competitive industry uses a large proportion of the available inputs in a resource market,then the long-run market supply curve for the industry will most likely be:

Question

Quizplus · Accepted Answer

When a perfectly competitive industry uses a large proportion of the available inputs in a resource market, it can cause an upward pressure on resource prices as the demand for them increases. This, in turn, can lead to higher production costs for firms in the industry, and a higher equilibrium price for the final product. As a result, the long-run market supply curve for the industry is likely to be upward sloping, reflecting the increasing costs of production as output expands.

If a Perfectly Competitive Industry Uses a Large Proportion of the Available