In an increasing cost industry, the long-run market supply curve is _____ because the long run ______ is increasing. downward sloping; average variable cost (AC) upward sloping; fixed cost (FC) downward sloping; marginal cost (MC) upward sloping; average cost (AC)

In an increasing cost industry, the long-run market supply curve is _ because the long run __ is increasing. downward sloping; average variable cost (AC) upward sloping; fixed cost (FC) downward sloping; marginal cost (MC) upward sloping; average cost (AC)

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 16SQ

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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

In an increasing cost industry, the long-run market supply curve is _____ because the long run ______ is increasing.

downward sloping; average variable cost (AC)
		upward sloping; fixed cost (FC)
		downward sloping; marginal cost (MC)
		upward sloping; average cost (AC)

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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