The long-run supply curve in a perfectly competitive increasing-cost industry is upward-sloping.

Question

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In a perfectly competitive increasing-cost industry, as the industry output increases, the price of one or more inputs required for the production process also increases. This leads to an upward shift in the cost curves of individual firms, resulting in an upward-sloping long-run supply curve for the industry as a whole.

The Long-Run Supply Curve in a Perfectly Competitive Increasing-Cost Industry