Question

The long-run industry supply curve for a perfectly competitive firm is A. flatter and more elastic than the short-run supply curve. B. flatter and more inelastic than the short-run supply curve. C. steeper and more elastic than the short -run supply curve. D. steeper and more inelastic than the short -run supply curve. E. more horizontal and more inelastic than the shortrun supply curve.

Solution

Verified
Answered this week
Answered this week

The long-run supply curve is always more elastic and flatter. This happens because of entry and exit in/from industry. Correct answer is A.

Create a free account to view solutions

Create a free account to view solutions

Recommended textbook solutions

Microeconomics 20th Edition by Campbell R. McConnell, Sean M. Flynn, Stanley L. Brue

Microeconomics

20th EditionISBN: 9780077660819Campbell R. McConnell, Sean M. Flynn, Stanley L. Brue
623 solutions
Economics: Principles, Problems, and Policies 20th Edition by Campbell R. McConnell, Sean M. Flynn, Stanley L. Brue

Economics: Principles, Problems, and Policies

20th EditionISBN: 9780078021756Campbell R. McConnell, Sean M. Flynn, Stanley L. Brue
967 solutions
Krugman's Economics for AP 2nd Edition by David Anderson, Margaret Ray

Krugman's Economics for AP

2nd EditionISBN: 9781464122187David Anderson, Margaret Ray
1,672 solutions

More related questions

1/4

1/7