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 fixed fee has a bent to increase the marginal cost curve in the quick run however due to the reality that the constant cost isn't feasible ultimately, the marginal charge declines and so the prolonged-run supply curve is falling ultimately.
In a decreasing fee enterprise, the prolonged-run deliver curve is downward sloping due to the reality that as output will grow and new businesses input, production expenses decline. The computer company is an example of a downward sloping transport curve, considering the truth that because the style of computer systems produced multiplied, the charge of inputs, together with chips, declined.
The lengthy-run deliver curve for an employer in which production charges boom as output rises (a developing-value industry) is upward sloping. The long-run deliver curve for a business enterprise in which manufacturing fees decrease as output rises (a decreasing-price business company) is downward sloping.
The lengthy-run shipping is the shipping of goods available at the same time as all inputs are variable. The lengthy-run delivery curve is continuously extra elastic than the fast-run shipping curve. The lengthy-run common fee curve envelopes the short-run commonplace rate curves in the u-customary curve.
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