Give Two Reasons Why the Long-Run Industry Supply Curve May

question 28

Essay

Give two reasons why the long-run industry supply curve may slope upward. Use an example to demonstrate your reasons.

---

Definitions:

Operating Activity

Business functions related to producing goods or services, which are reflected in the company's cash flow from operations.

Investing Activity

Investing activity refers to the purchase or sale of long-term assets and investments, reflecting a company’s spending on acquiring and disposing of long-term assets.

Financing Activity

Transactions involving the flow of cash between a company and its owners, investors, or creditors, excluding operational and investing activities.

Statement of Cash Flows

A ledger statement which outlines how modifications in balance sheet accounts and revenue streams influence cash and cash equivalents, with the analysis broken down by operating, investing, and financing operations.