An Increasing-Cost Industry Is Associated with

question 146

Multiple Choice

An increasing-cost industry is associated with

• A) a perfectly elastic long-run supply curve.
• B) an upsloping long-run supply curve.
• C) a perfectly inelastic long-run supply curve.
• D) an upsloping long-run demand curve.

---

Definitions:

Consolidation

The process of combining multiple accounts or businesses into a single entity, often for the purpose of simplifying financial statements or achieving operational efficiencies.

Holding Company

A company that owns other companies. A parent company.

Leveraged Buyout

A financial transaction where a company is acquired primarily with borrowed funds, often with the assets of the company being acquired used as collateral for the loans.

Economies of Scale

The cost advantage that arises with increased output of a product, as fixed costs are spread over more units.