In an increasing-cost industry,the slope of the long-run supply curve is _____.
A)zero
B)negative
C)positive
D)infinity

Question

Quizplus · Accepted Answer

In an increasing-cost industry, the cost of production increases as firms enter the market and increase demand for inputs. As a result, the long-run supply curve has a positive slope indicating that as the price of the good increases, the quantity supplied also increases, but at a higher cost of production. Therefore, the correct answer is C, positive.

In an Increasing-Cost Industry,the Slope of the Long-Run Supply Curve