Suppose a perfectly competitive,increasing-cost industry is in long-run equilibrium when market demand increases.What is likely to happen to a typical firm in the long run?

Question

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In a perfectly competitive, increasing-cost industry, when market demand increases, firms will initially experience higher prices due to increased demand. In the long run, new firms will enter the market, increasing supply and driving prices down, but because it's an increasing-cost industry, the costs of production for all firms will rise as the industry expands. This leads to a new equilibrium price that is higher than the original equilibrium price, as firms face higher costs.

Suppose a Perfectly Competitive,increasing-Cost Industry Is in Long-Run Equilibrium When