Figure 5-16
-Refer to Figure 5-16.Which supply curve is most likely relevant over a very long period of time?
A) S1
B) S2
C) S3
D) All of the above are equally likely to be relevant over a very long period of time.

Question

Figure 5-16 
-Refer to Figure 5-16.Which supply curve is most likely relevant over a very long period of time?
A) S1 
B) S2 
C) S3 
D) All of the above are equally likely to be relevant over a very long period of time.

Quizplus · Accepted Answer

S3 is the most likely relevant supply curve over a very long period of time as it represents the maximum amount of output that can be produced given the resources available in the long run. S2 and S1 represent short-run supply curves that are affected by variable costs and inputs that can change over time. Therefore, S3 is the only relevant supply curve over a very long period of time.

Figure 5-16 -Refer to Figure 5-16.Which Supply Curve Is Most Likely Relevant