Asked by Boston Bragg on Jul 15, 2024
Verified
Which of the following statements is true for a long-run supply curve that slopes upward?
A) If total market output is increased, unit costs of production increase.
B) If total market output is unchanged, unit costs of production increase.
C) The total cost of producing 15 units is no larger than the cost of producing 10 units.
D) If total market output is decreased, total costs of production will remain unchanged.
Slopes Upward
A term used to describe a line or curve on a graph that increases in value as it moves from left to right.
Long-Run Supply Curve
A graphical representation showing how the quantity supplied by an industry or a firm changes over time when all input levels, including physical capital, are variable.
Total Market Output
The total quantity of goods or services produced and offered for sale within a market by all firms.
- Gain an awareness of the consequences industry size variations have on the cost of resources and production expenses.
Verified Answer
BM
Barry McKinleyJul 20, 2024
Final Answer :
A
Explanation :
An upward-sloping long-run supply curve indicates that as the total output in the market increases, the unit costs of production also increase. This is often due to factors like diminishing returns to scale, increased input prices as demand for inputs rises, or other inefficiencies that occur at higher levels of production.
Learning Objectives
- Gain an awareness of the consequences industry size variations have on the cost of resources and production expenses.