One explanation for the existence of an increasing-cost industry is:
A) increasing marginal returns to labor occur.
B) firms produce beyond the point of minimum long-run average total costs.
C) perfectly elastic long-run supply schedules are observed in the industry.
D) as the industry expands,input prices are bid up for some factor of production.
Correct Answer:
Verified
Q101: The long-run supply curve in a constant-cost
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Q103: An economy is producing at the least-cost
Q105: Q107: Assume that the market for soybeans is Q108: The long-run supply curve would be upsloping Q109: When a purely competitive industry is in Q109: The long-run supply curve under pure competition Q110: Which statement is correct? The long-run supply Q111: Productive efficiency refers to:![]()
A) cost minimization,where P
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