Asked by Tania Alvarez Avila on Mar 10, 2024



Input prices fall as entry occurs in an increasing-cost industry.

Increasing-Cost Industry

An industry in which production costs increase as output expands, often due to factors like resource depletion or increased demand for inputs.


The act of a new competitor joining a market, which can influence market dynamics, prices, and competitive strategies.

Input Prices

Refers to the costs associated with the goods and services used in the production of another product, affecting the overall cost of production.

  • Study the effects of market entry and exit on the state of supply in an industry.

Verified Answer

McKenna Kuehl

Mar 10, 2024

Final Answer :
Explanation :
In an increasing-cost industry, input prices tend to rise as firms enter the market, because the increased demand for inputs drives up their prices.