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.
You might be interested in
Answer:
(A) 352,410
(B) 328,910
(C) 474,120
(D) 461,770
(E) 165,000
(F) 175,000
Explanation:
1.- WIP, August 1st: $ 19,660 $ 41,650 (e)
2.- Cost added $ 332,750 (c) $ 1,075,000
3.- Subtotal (a) $ 515,770 $ 1,240,000
4.- WIP, August 31th $ 23,500 $ 54,000 (f)
5.- COGM (b) (d) $1,068,000
The identity to solve for this is as follow:
<u>The third row is the sum of the left side of the of the equation.</u>
beginning WIP + cost added.
(a) 332,750 + 19,660 = 352,410
(c) 515,770 - 41,650 = 474,120
(e) 1,240,000 - 1,075,000 = 165,000
COMG will be third row less fourth row
the ending WIP subtracted from the left side
(b) 352,410 - 23,500 = 328,910
(d) 515,770 - 54,000 = 461,770
(f) 1,240,000 - 1,068,000 = 175,000