For an increasing cost industry,the long-run supply curve has a(n)elasticity of supply
A)infinite.
B)negative.
C)positive.
D)zero.

Question

Quizplus · Accepted Answer

In an increasing cost industry, the cost of production will rise as output increases, making it more difficult for firms to increase their supply in the long run. This means that the long-run supply curve will be relatively steep and have a positive elasticity of supply, meaning that any increase in price will result in a proportionate increase in quantity supplied.

For an Increasing Cost Industry,the Long-Run Supply Curve Has A(n)elasticity