When a key production input is scarce, causing cost increases for all current firms as the industry grows, what shape does the long-run market supply curve likely take?

Show Answers

completely unresponsive to price changesentirely responsive to price variationsrising as quantity supplied increasesfalling as more quantity is suppliedconstant regardless of output level

Explanation

If a critical input is limited, expanding the industry pushes up costs for all firms, resulting in a long-run supply curve that slopes upward, reflecting higher prices needed to supply greater quantities.