Explore BrainMass
Share

Explore BrainMass

    The long-run industry supply curve for an increasing-cost industry

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Why does the long-run industry supply curve for an increasing-cost industry slope upward? What causes the increasing costs in an increasing-cost industry?

    © BrainMass Inc. brainmass.com October 10, 2019, 3:14 am ad1c9bdddf
    https://brainmass.com/economics/short-and-long-run-cost-functions/long-run-industry-supply-curve-increasing-cost-industry-412348

    Solution Preview

    The long-run industry supply curve for an increasing-cost industry slopes upward since the increasing cost industry gives subsequent rise to higher prices. The increasing costs and subsequent higher prices concurrently give producers the incentive to therefore supply more goods and services in the anticipation that they will generate more revenues. This can conversely ...

    Solution Summary

    This solution explains why the long-run industry supply curve for an increasing-cost industry slopes upward.

    $2.19