If the Long-Run Industry Supply Curve in a Perfectly Competitive

question 136

Multiple Choice

If the long-run industry supply curve in a perfectly competitive market slopes upward, what will likely happen to input prices as industry output expands?

• A) Input prices will first increase and then decrease.
• B) Input prices will remain constant.
• C) Input prices will increase.
• D) Input prices will decrease.

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Definitions:

Labour

The human workforce involved in productive work, especially physical work, in an economy or for a specific project or company.

Profit Margins

measure the difference between the cost of producing a product or service and its selling price, expressed as a percentage of the sales price.

Maximum Amounts

The highest permissible or possible quantities or levels of something.

Slack

The amount of time that a project task can be delayed without causing a delay to subsequent tasks or the whole project.