Question

a firms supply curve is up sloping or positive ly sloped because

Answer 1

Sometimes, an expansion in industry output causescosts to the rise in the long run. Thus, an industry expands, external diaeconomies is greater than external economiesleading to a net increase in costs. As industry expands, demand foe inputs rise and cost rise since the industry operates under increasind cost condition.

External diseconomies causes LRAC (long run average cost) curve to shift upward as industry expands. Consequently, the lond run firm supply curve becomes positive sloping.