Question

In several perfectly competitive markets for minerals used as inputs in digital devices, persistent increases in demand eventually have generated long-run increases in the market prices of these devices. Describe in words the types of adjustments that must have occurred in these markets to have brought about this outcome, and evaluate whether such digital-device industries are increasing-, constant-, or decreasing-cost industries.

Short answer

It's within the long term, the variable costs have dipped with consistent or dipped costs,leading to economic profits

Step-by-step solution

Introduction

A competitive market is one where there are numerous producers that compete witheach other in hopesto supply goods and services we, as consumers, wantand want. In other words, not one single producer can dictate the market. One producer and one consumer can't decidethe worth of products or decidethe number that may be produced.

Given Information

Minerals used as inputs in digital devices, persistent increases in demand eventually have generated long-run increases within the market prices of those devices.

Explanation

The industry has seen as an constant cost industry.
In this, the long term inputs have dipped in prices nor stayed constant. Since, it's within the long term, the variable costs have dipped with consistent or dipped costs, leading to economic profits.