As new firms enter an increasing-cost industry

A) the LRAC curve shifts down.
B) the LRAC curve shifts up.
C) the position of the LRAC curve doesn't change, but firms move down their LRAC curve.
D) the position of the LRAC curve doesn't change, but firms move up their LRAC curve.

LRAC Curve

the Long-Run Average Cost curve, showing the lowest average cost at which any output level can be produced when all inputs are variable.

Increasing-Cost Industry

An industry where the costs of production increase as the output expands, often due to factors like resource depletion and higher input prices.