Question

​If, as a perfectly competitive industry​ expands, it can supply larger quantities at the same longminusrun market​ price, it is_______

A. a fixedminuscost industry.
B. a constantminuscost industry.
C. an increasingminuscost industry.
D. a decreasingminuscost industry.

Answer 1

C. an increasing-cost industry.

Step-by-step explanation:

Based on the information provided within the question it can be said that this is describing an increasing-cost industry. This is able to occur due to the amount of new firms entering the industry to compete, thus increasing demand, which in term causes the long-run cost curve to move upwards and increasing the minimum efficient scale of production at the same time.