If the Long-Run Industry Supply Curve in a Perfectly Competitive

question 49

Multiple Choice

If the long-run industry supply curve in a perfectly competitive market slopes upward, then very likely input prices will ____ as industry output expands.

• A)increase
• B)decrease
• C)remain constant
• D)first increase and then decrease
• E)None of the above.

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Definitions:

Leasing

A contractual arrangement where one party allows another to use an asset for a specified time in return for periodic payments.

Buying

The action of purchasing goods, services, or financial assets.

Corporate Tax Rate

The corporate tax rate is the percentage of a corporation's income that it pays in taxes to the government.

CCA Class 10

A category under the Canadian Capital Cost Allowance that pertains to specific types of property with a depreciation rate set by the tax code.