Question

Demand increases in an increasing-cost industry that is initially in long-run competitive equilibrium. After full adjustment, price will be

Answer 1

Answer: above its original value

Explanation:

An increasing-cost industry simply means the industries whereby there's a rise in the average costs when the output increases.

Demand increases in an increasing-cost industry which is in long-run competitive equilibrium. After full adjustment, price will be above its original value.