If input costs remain the same as industry output expands, what would you expect to be the long-run impact of an increase in demand on an industry currently in long-run equilibrium?

Question

Quizplus · Accepted Answer

In the long run, if input costs remain constant, an increase in demand will lead to more firms entering the market to meet the higher demand, but the price will remain the same due to constant input costs and perfect competition.

If Input Costs Remain the Same as Industry Output Expands