In an increasing cost industry, the long-run market supply curve is:

Question

Quizplus · Accepted Answer

In an increasing cost industry, as the demand for output increases, the cost of production also increases due to the scarcity of resources. This means that in the long run, firms will be willing to supply less output at any given price, resulting in an upward sloping market supply curve. In an increasing cost industry, the cost of producing a good or service increases as the industry grows. This means that as more firms enter the market and the industry expands, the cost of production also increases. As a result, the long-run market supply curve will slope upward, indicating that as price increases, firms will be willing to supply more output but at higher costs.

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