Describe the graph for a long-run supply curve in an increasing-cost industry. Why does it have this slope?

The long-run industry supply curve slopes upward in an increasing-cost industry. That's because the entry of new firms in response to an increase in demand will bid up resource prices and thereby increase unit costs. As a result, an increased industry output will occur only at higher prices. Conversely, a decline in demand makes production unprofitable and causes firms to leave the industry. The resulting decline in resource prices reduces the minimum average total cost of production for firms that stay. A new equilibrium price is established at some level below the original price. Connecting the different equilibrium positions, an upward-sloping long-run supply curve is derived.