If a perfectly competitive industry uses a large proportion of the available inputs in a resource market, then the long-run market supply curve for the industry will most likely be:

Question

Quizplus · Accepted Answer

In a perfectly competitive industry, if a large proportion of available inputs is used, it implies that as production increases, the industry will likely face increasing input prices due to the scarcity of inputs. This will cause the long-run market supply curve to be upward sloping, reflecting higher costs of production as output increases.

If a Perfectly Competitive Industry Uses a Large Proportion of the Available