Graph 5-5 -In Graph 5-5, which supply curve is most likely the long-run supply curve? A) S₁ B) S₂ C) S₃ D) all of the above are equally likely to be the long-run supply curve

Question

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The long-run supply curve represents the company's ability to adjust to changes in market conditions over time. It is generally flatter than the short-run supply curve because firms have more time to adjust their production process and enter or exit the industry. In Graph 5-5, curve S₃ is the flattest and most elastic, indicating that firms have the most flexibility to adjust to market changes over the long run. Therefore, it is most likely to be the long-run supply curve.

Graph 5-5 -In Graph 5-5, Which Supply Curve Is Most Likely the Is