Asked by Morgan Brunk on May 23, 2024
Verified
If the long-run supply curve of a purely competitive industry slopes upward, this implies that the prices of relevant resources
A) will fall as the industry expands.
B) are constant as the industry expands.
C) rise as the industry contracts.
D) rise as the industry expands.
Relevant Resources
Resources that are directly applicable to the current economic, educational, or social context or need.
Industry Expands
This refers to the growth in the production capacity and output of various sectors in an economy, often due to increased demand or technological advancements.
Long-Run Supply Curve
A graphical representation showing the quantities of a good a firm is willing to supply at different prices over a period when all input levels can be varied.
- Understand the implications of changes in industry size on resource prices and production costs.
Verified Answer
BW
Breshay WaltonMay 26, 2024
Final Answer :
D
Explanation :
An upward-sloping long-run supply curve in a purely competitive industry suggests that as the industry expands, the prices of relevant resources increase, due to higher demand for those resources or diminishing returns.
Learning Objectives
- Understand the implications of changes in industry size on resource prices and production costs.