The slope of the long-run supply curve depends on whether the industry in question is a constant-cost,

Question:

The slope of the long-run supply curve depends on whether the industry in question is a constant-cost, increasing-cost, or decreasing cost industry.
1. Explain what will happen in a constant-cost competitive industry if demand increases.
2. Explain what will happen in an increasing-cost competitive industry if demand increases.
3. Explain what will happen in a decreasing-cost competitive industry if demand increases.
4. Draw the long-run supply curves for a constant-cost, increasing-cost, and decreasing cost industry.