If the Long-Run Supply Curve Is Upward Sloping, We Know

question 9

Multiple Choice

If the long-run supply curve is upward sloping, we know that

• A) entrepreneurs are earning higher profits as output expands.
• B) some input prices are increasing as the industry expands.
• C) firms are getting larger as the industry contracts.
• D) the law of diminishing marginal returns has set in.

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Definitions:

Logical Arguments

Reasoning formed through a sequence of statements or premises that lead logically to a conclusion.

Skeptical Audience

A group of individuals who are inclined to doubt or question the validity of the information presented to them.

Raw Data

Raw data are the unprocessed facts and figures collected from different sources that need analysis to make them meaningful.

Market Analysis

Market analysis involves the evaluation of a specific market within an industry, assessing its dynamics, trend, competition, and customer behavior to inform business strategies.