A decreasing-cost industry will have Group of answer choices a perfectly elastic long-run supply curve. a perfectly inelastic lo
ng-run supply curve. an upward sloping demand curve in the long run. a downward sloping supply curve in the long run.
1 answer:
Answer: a downward sloping supply curve in the long run
Explanation:
In a DECREASING COST industry, producing more output leads to a reduction in costs associated.
Graphically represented then, in the long run when output have Increased, the supply curve will be DOWNWARD sloping as it costs LESS to make MORE.
I have attached a graph to explain further.
As you see, more output means less price so the Supply Curve is sloping downward.
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