Answered: The long-run supply curve of a…

The long-run supply curve of a perfectly competitive industry with increasing costs is: a) Perfectly inelastic b) With positive slope c) Perfectly elastic d) With negative slope

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

The long-run supply curve of a perfectly competitive industry with increasing costs is:

a) Perfectly inelastic

b) With positive slope

c) Perfectly elastic

d) With negative slope

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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