A market might have an upward-sloping long-run supply curve if A. firms have different costs. B. consumers exercise market power over producers. C. all factors of production are essentially available in unlimited supply. D. the entry of new firms into the market has no effect on the cost structure of firms in the market

Question

Business

Karla Smith

24 April, 13:38

A market might have an upward-sloping long-run supply curve if A. firms have different costs. B. consumers exercise market power over producers. C. all factors of production are essentially available in unlimited supply. D. the entry of new firms into the market has no effect on the cost structure of firms in the market

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Answers (1)

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Kiera Brady · Answer 1

Option A is correct

Firms have different costs.

Explanation:

Option A is correct

Long run supply curve is upward sloping or constant horizontal line depends on the industry whether it is variable cost industry (increasing production cost) or a constant cost industry respectively. Option A is correct because if firms have different production cost and it is increasing as the output is increasing then it is upward Sloping long-run supply curve.