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Given Below Is a Perfectly Competitive Firm Under Long Run

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Given below is a perfectly competitive firm under long run equilibrium.AC and MC represent the average cost and the marginal cost incurred by the firm.P₀ is the equilibrium price level while Q₀ is the equilibrium output.

   Given below is a perfectly competitive firm under long run equilibrium.AC and MC represent the average cost and the marginal cost incurred by the firm.P₀ is the equilibrium price level while Q₀ is the equilibrium output.    -Refer to Figure 5-2.What will be the impact of the rise in raw materials cost on the long-run supply curve of this industry? A) The long-run supply curve will shift upward. B) The long-run supply curve will shift downward. C) The long-run supply curve will remain unchanged. D) The long-run supply curve will change into an upward rising step function.
-Refer to Figure 5-2.What will be the impact of the rise in raw materials cost on the long-run supply curve of this industry?

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