Assume that the tuna fishing industry is perfectly competitive.Which of the following best characterises the industry if,as demand for tuna increases,fishing boats have to go farther into the ocean to harvest tuna?

Question

Quizplus · Accepted Answer

As fishing boats have to go farther into the ocean to harvest tuna, the cost of production for each individual firm in the industry increases. This suggests that the industry is an increasing-cost industry.

Assume That the Tuna Fishing Industry Is Perfectly Competitive