If all firms existing and potential new entrants face


If all firms, existing and potential new entrants face decreasing industry costs in the long run under perfect competition, the industry supply curve will:

Necessarily be upward sloping

Slope downwards if there are external diseconomies of scale

Slope upwards if there are internal economies of scale

Only be horizontal if there are constant external costs with respect to industry size

Slope downwards if there are external economies of scale

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Business Economics: If all firms existing and potential new entrants face
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