Thank you all. Still not really convinced however. My own supposition
>
is that the increasing (or decreasing) cost effect is outweighed by the
profit motive in so that even in decreasing cost industries the curve slopes
up. Which leaves me unhappy with texts that boldly state the supply curve
slopes upward because.....1. 2. 3.
So I turn to Marshall (8th edition) and to find him just as confused - he
proposed long run downward slope for supply in industries with decreasing
costs from external economies of scale - other economists apparently
(who?)(Blaug 1961) thought this unlikely or inconsequential.
I however note that as commodity prices fall LDC's increase production to
maintain income to pay debt.
Thanks again.
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