The horizontal axis is labeled Q. The vertical axis is labeled unit costs. The graph shows a rising line labeled (1) long-run supply and a horizontal line labeled (2) long-run supply. The rising line begins at the bottom left and ends at the top-right. The horizontal line begins at a point that is above the origin and near the vertical axis, goes straight and to the right, intersects the rising line at a point, and ends at the right. Line (2) in the diagram reflects a situation where resource prices.