What Is the Shape of the Long-Run Supply Curve in a Decreasing-Cost

question 307

Multiple Choice

What is the shape of the long-run supply curve in a decreasing-cost industry?

• A) horizontal
• B) increasing
• C) downward sloping
• D) upward sloping

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Definitions:

Expected Profit Rate

The forecasted return on an investment, calculated based on potential outcomes and their probabilities.

Net Inventory Investment

The change in the total value of inventories in an economy during a specific period.

Positive

An attribute or condition that reflects an increase, improvement, or favorable outcome.

Gross Investment

The total amount of capital invested in a firm, including replacements for depreciation and new investments for expansion.