One reason why the long-run supply curve may slope upward in a competitive market is that

Question

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If some resources necessary to produce the product may be available only in limited supplies, then as the industry expands and more firms enter, the demand for these limited resources increases, driving up their price. This, in turn, increases the cost of production and reduces the profitability of each firm, resulting in fewer firms willing to supply the product in the long run. Hence, the long-run supply curve may slope upward due to the limited availability of resources.

One Reason Why the Long-Run Supply Curve May Slope Upward