Marshall suggested that the cause of a downward-sloping long-run supply curve is a. The absence of fixed cost in the long run. B. The increased number of firms in the industry. C. Reduced input prices. D. Reduced output prices.

Respuesta :

Marshall suggested that the cause of a downward-sloping long-run supply curve is A) The absence of fixed cost in the long run.

A set cost has a tendency to increase the marginal cost curve inside the quick run but because of the fact that the fixed cost isn't viable ultimately, the marginal price declines and so the lengthy-run supply curve is falling ultimately.

In a reducing value enterprise, the lengthy-run deliver curve is downward sloping because of the reality that as output will grow and new businesses enter, production costs decline. The pc agency is an example of a downward sloping delivery curve, thinking about the truth that because the variety of computer systems produced multiplied, the price of inputs, including chips, declined.

The lengthy-run deliver curve for an enterprise wherein manufacturing expenses boom as output rises (a growing-value industry) is upward sloping. The long-run deliver curve for an employer in which manufacturing costs decrease as output rises (a reducing-rate business enterprise) is downward sloping.

The long-run delivery is the shipping of goods to be had whilst all inputs are variable. The lengthy-run supply curve is constantly greater elastic than the quick-run shipping curve. The lengthy-run average fee curve envelopes the short-run common charge curves in u-fashioned curve.

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