If the Long-Run Supply Curve Is Upward-Sloping, It Indicates That

question 67

Multiple Choice

If the long-run supply curve is upward-sloping, it indicates that resource prices fall when

• A) production in the industry decreases in the long run.
• B) production in the industry increases in the long run.
• C) new firms enter the industry.
• D) short-run profits in the industry are positive.

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Definitions:

Experiment

A method of testing hypotheses by observing the outcomes of controlled conditions.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together, showing the relationship but not causation between them.

Causation

The relationship between cause and effect, where one event or action directly results in another.

Experiments

Systematic and scientific procedures carried out under controlled conditions to investigate a hypothesis or demonstrate a known fact.