Asked by
Danielle Esposito
on Nov 27, 2024
Verified
A decreasing-cost industry is one in which
A) contraction of the industry will decrease unit costs.
B) input prices fall or technology improves as the industry expands.
C) the long-run supply curve is perfectly elastic.
D) the long-run supply curve is upsloping.
Decreasing-cost Industry
An industry wherein an increase in the scale of production leads to a reduction in the average cost of production.
Input Prices
The costs associated with purchasing the raw materials, labor, and other factors of production required to produce goods or services.
Industry Expands
The process of growth within a specific sector of the economy, characterized by an increase in output, sales, or the number of operators.
- Identify the characteristics and ramifications of industries with constant, increasing, and decreasing costs.
- Comprehend the significance of technology and economies of scale in influencing the costs associated with industry operations and the determination of prices in markets.
Verified Answer
RH
Learning Objectives
- Identify the characteristics and ramifications of industries with constant, increasing, and decreasing costs.
- Comprehend the significance of technology and economies of scale in influencing the costs associated with industry operations and the determination of prices in markets.