The Long-Run Supply Curve Can Have a Positive Slope Because

question 223

Multiple Choice

The long-run supply curve can have a positive slope because _____ in the long run.

• A) wages decline
• B) profits increase
• C) industry costs decline
• D) industry costs increase

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Definitions:

Average Variable Costs

The total variable cost divided by the quantity of output produced, reflecting the variable cost per unit.

Sales Promotion

A marketing strategy involving the use of short-term incentives to encourage the purchase or sale of a product or service.

Marginal Revenue

The increase in revenue that results from selling one more unit of a product.

Imperfect Competition

A market structure characterized by the presence of several competing firms but which lack the conditions of perfect competition, often leading to market power.