Asked by Santiago alzate on May 23, 2024
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The long-run supply curve for a competitive, decreasing-cost industry is downward-sloping.
Decreasing-Cost Industry
An industry where the average cost of production decreases as the industry's output increases, often due to economies of scale.
Long-Run Supply Curve
A graphical representation showing the relationship between the market price of a good and the quantity of it that producers are willing to supply when all production inputs are variable.
Downward-Sloping
Describes a line or curve on a graph that descends from left to right, indicating a negative relationship between two variables.
- Comprehend the dynamics of long-duration supply curves in light of variations in industry expenses and changes in market involvement.
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Learning Objectives
- Comprehend the dynamics of long-duration supply curves in light of variations in industry expenses and changes in market involvement.
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