Asked by Hannah Kristen on Jun 20, 2024
Verified
An industry with a positive-sloping long-run supply curve is called a(n) ________ industry.
A) constant-cost
B) decreasing-cost
C) increasing-cost
D) decreasing-profit
Increasing-Cost Industry
An industry where production costs increase as output grows, often due to resource limitations or regulatory constraints.
- Gain an understanding of the ways in which characteristics of the industry impact the configuration of the long-run industry supply curve.
Verified Answer
RC
Ranjabati ChakrabortiJun 26, 2024
Final Answer :
C
Explanation :
An increasing-cost industry is characterized by a positive-sloping long-run supply curve, indicating that as output increases, the costs of production also increase. This can be due to factors such as the depletion of resources, increased prices for inputs as demand rises, or the industry operating at less efficient scales as it expands.
Learning Objectives
- Gain an understanding of the ways in which characteristics of the industry impact the configuration of the long-run industry supply curve.