Explain what happens to the long-run supply curve of an industry when firm entry raises the price of inputs used in the industry

What will be an ideal response?

When firm entry raises the price of inputs used in the industry, the average total cost curve and marginal cost curves shift upward. This in turn causes the firms' short-run supply curves to shift upward when there is an increase in market demand. As a result, the long-run industry supply curve slopes upward.