Long-run supply curves for a purely competitive industry can never be downsloping.

Long-Run Supply Curves

A graphical representation showing the relationship between the price of a good and the quantity supplied over a longer period, considering adjustments in factors of production.

Purely Competitive

A market structure characterized by many buyers and sellers, all of whom are price takers offering homogenous products.

Downsloping

Characteristic of a curve or line on a graph that shows a decrease in value as it moves from left to right, commonly used in economics to describe demand curves.

Familiarize with the conduct of long-range supply curves following changes in sector costs and market entry or exit activities.

Verified Answer

Nadia HasaniJul 21, 2024

Final Answer :

False

Explanation :

In a purely competitive industry, the long-run supply curve can be downsloping if the industry experiences increasing returns to scale, leading to lower average costs as output expands.

Learning Objectives

Familiarize with the conduct of long-range supply curves following changes in sector costs and market entry or exit activities.

Long-run supply curves for a purely competitive industry can never be downsloping.

Definitions

Learning Objectives

Learning Objectives

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