If a Perfectly Competitive Industry Is Characterized by Increasing Cost

question 240

Multiple Choice

If a perfectly competitive industry is characterized by increasing cost in the long run, its long-run:

• A) industry supply curve is upward sloping.
• B) marginal revenue curve is upward sloping.
• C) marginal cost curve is downward sloping.
• D) average fixed cost curve is downward sloping.

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Definitions:

Chemical Breakdown

The process of breaking down substances into simpler molecules through chemical reactions.

Catabolism

The metabolic process that breaks down molecules into smaller units, releasing energy usually stored in ATP.

Anabolism

The metabolic process in living organisms that synthesizes complex molecules from simpler ones, often requiring energy.

Monosaccharide

The simplest form of carbohydrates, consisting of a single sugar molecule, such as glucose or fructose.