One Reason Why the Long-Run Supply Curve May Slope Upward

question 124

Multiple Choice

One reason why the long-run supply curve may slope upward in a competitive market is that

• A) firms can exit the industry easily.
• B) firms can enter the industry easily.
• C) there are many buyers and many sellers.
• D) some resources necessary to produce the product may be available only in limited supplies.
• E) some resources necessary to produce the product are not limited.

Analyze the impact of consumer preference changes on market equilibrium and firm's efficiency.

Recognize the effects of technological advances on industry supply and equilibrium.

Describe the process and outcomes of general and partial equilibrium analysis.

Evaluate the impact of changes in consumer preferences on market dynamics and resource allocation.