The Long-Run Industry Supply Curve ________ in an Increasing-Cost Industry

question 111

Multiple Choice

The long-run industry supply curve ________ in an increasing-cost industry.

• A) slopes up
• B) slopes down
• C) is vertical
• D) is horizontal

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Definitions:

Restocking Cost

The expenses involved in replenishing inventory or stock.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Collection Period

The time frame it takes for a business to convert its credit sales into cash, reflecting how efficient a company is at collecting accounts receivable.