Asked by

Jacquinta Kyles
on Dec 10, 2024

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Why will the long-run market supply curve for most products slope upward to the right?

A) The firms producing the product will be unable to expand the size of their plant and equipment in the long run.
B) Economies of scale are present in most industries.
C) Most products are produced under conditions of constant cost.
D) Resource prices will rise and push costs upward as the output of the industry expands.

Long-run Market Supply

Describes the total quantity of a good or service that producers are willing and able to supply at various prices in the long term, considering all factors of production are variable.

Resource Prices

The costs associated with acquiring the inputs needed for production, including raw materials, labor, and capital.

Industry Expands

The process of growth within a particular sector due to factors like increased demand, technological advancements, or entry of new businesses.

  • Recognize the elements influencing the configuration of the long-run supply curve across various industrial sectors.
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Laxmi PrasannaDec 11, 2024
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