If the long-run market supply curve in a perfectly competitive industry is upward sloping, then the industry:

Question

Quizplus · Accepted Answer

An upward sloping long-run market supply curve indicates that as industry output increases, the cost of production for the firms also increases. This implies that the industry is an increasing-cost industry, where the cost of production for the firms rises due to factors such as an increase in the price of inputs or a decrease in the availability of resources.

If the Long-Run Market Supply Curve in a Perfectly Competitive