Asked by
Simone Portnoy
on Oct 08, 2024
Verified
A decreasing-cost industry is one in which:
A) contraction of the industry will decrease unit costs.
B) input prices fall or technology improves as the industry expands.
C) the long-run supply curve is perfectly elastic.
D) the long-run supply curve is upsloping.
Decreasing-cost Industry
An industry in which costs per unit decrease as the scale of production increases.
Long-run Supply Curve
A curve that shows the relationship between the price of a good and the quantity supplied over a long period, taking into account all possible adjustments including entry and exit of firms.
Input Prices
The costs of raw materials and components required to produce a good or service.
- Recognize the attributes and results associated with varying market structures, including constant-cost, increasing-cost, and decreasing-cost sectors.
- Understand the influence of technological progress on the expenses of industries and the prices for consumers.
Verified Answer
KV
Learning Objectives
- Recognize the attributes and results associated with varying market structures, including constant-cost, increasing-cost, and decreasing-cost sectors.
- Understand the influence of technological progress on the expenses of industries and the prices for consumers.
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