Suppose the Long-Run Supply Curve for a Good Is Upward-Sloping

question 225

Multiple Choice

Suppose the long-run supply curve for a good is upward-sloping. The upward slope could be explained by

• A)increases in production costs resulting from more firms coming into the market.
• B)a breakdown of the "free entry and exit" feature of competition.
• C)a breakdown of the "price taking" feature of competition.
• D)a stable demand curve for the good, that is, a demand curve that never shifts.

---

Definitions:

Tax

A non-negotiable pecuniary charge or alternate levy directed at a taxpayer by a government authority to underwrite the costs of government functioning and various public funding requirements.

Good

An item or product that can be used to satisfy a want or need.

Tax Revenue

The income that a government receives from taxes imposed on individuals and businesses.

Tax

Mandatory financial charge imposed by a government on individuals, corporations, or transactions to fund public expenditures.