Describe the graph for a long-run supply curve in an increasing-cost industry. Why does it have this slope?
What will be an ideal response?
For the graph, quantity or output for the industry will be on the horizontal axis and price will be on the vertical axis. The slope of the graph for a long-run supply curve in an increasing-cost industry will be up sloping. It shows that shows that an increase in the level of output is associated with an increase in the price of the product. The reason for the upward slope is that as firms increase output, they bid up resource prices, and this increases the minimum average total cost of the product.
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The government makes all economic decisions in a mixed economy
Indicate whether the statement is true or false
A market for a product is in equilibrium when:
a. Quantity supplied equals quantity demanded b. Quantity demanded is greater than quantity supplied c. The supply curve remains fixed d. Product price equals demand
What would best characterize the relationship between corn prices, wheat prices and the public sale of western land (OH, IL, IN, MI, IA, WI, MO) between 1815-1860?
a. All three were very positively correlated. b. Land sales increased first, which drew people to move and produce more crops, which increased the crop prices. c. As land sales increased, corn prices increased and wheat prices decreased as farmers substituted from wheat to corn. d. Land sales were negatively related to both the wheat and corn prices.
In her book on the American work week, economist Juliet Schorr argues that Americans work too much. Her argument may be interpreted as concluding that this behavior
a. increases GDP but decreases well being. b. increases GDP and increases well-being. c. decreases GDP and decreases well being. d. decreases GDP but increases well being.