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

Quizplus · Accepted Answer

A market might have an upward-sloping long-run supply curve if firms have different costs. This means that some firms in the market have higher production costs than others. As the market price increases, some firms will be able to enter the market profitably, while others will exit the market because their costs are too high. As a result, the long-run supply curve will slope upward, reflecting the increasing costs of production as more firms enter the market. The other options (B, C, and D) do not lead to an upward-sloping long-run supply curve.

A Market Might Have an Upward-Sloping Long-Run Supply Curve If