Asked by Seantinique Parks on Mar 10, 2024
Verified
Refer to Figure 9.7. The type of industry depicted in this situation is
A) an increasing-cost industry.
B) a decreasing-cost industry.
C) a constant-cost industry.
D) impossible to determine from this information.
Increasing-Cost Industry
An industry in which the costs of production increase as more firms enter the market, typically due to limitations in resources.
Decreasing-Cost Industry
An industry in which the average cost of production decreases as the industry grows and output increases.
- Understand the relationship between industry characteristics and the delineation of the long-run industry supply curve.
Verified Answer
SM
Sierra MotsingerMar 10, 2024
Final Answer :
A
Explanation :
In an increasing-cost industry, as the industry expands, the costs of production for firms within the industry also increase. This can be due to factors such as rising input prices as demand for inputs increases, or the depletion of easily accessible resources, making production more expensive.
Learning Objectives
- Understand the relationship between industry characteristics and the delineation of the long-run industry supply curve.
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