Asked by Patrick Olano on Jun 09, 2024
Verified
Compare the shape of a long-run supply curve for a constant-cost industry, a decreasing-cost industry, and an increasing-cost industry.
Long-Run Supply Curve
A graphical representation that shows how the quantity supplied of a good changes in response to a price change once producers have had enough time to adjust their production decisions fully.
Constant-Cost Industry
An industry in which costs of production do not change as the industry's output changes.
Decreasing-Cost Industry
An industry where the costs of production decrease as the industry grows and output increases, due to factors such as economies of scale.
- Detail the association between long-term supply curve flexibility and the expense structure of industries.
Verified Answer
Learning Objectives
- Detail the association between long-term supply curve flexibility and the expense structure of industries.
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