Long-run producer surplus in a perfectly competitive industry accrues mainly to:
A)suppliers of inputs with inelastic supply curves.
B)suppliers of inputs with elastic supply curves.
C)firms' owners.
D)marginal consumers.

Question

Quizplus · Accepted Answer

In a perfectly competitive industry, long-run producer surplus mainly accrues to suppliers of inputs with inelastic supply curves because their limited availability and lack of close substitutes allow these suppliers to maintain higher prices and profits over time.

Long-Run Producer Surplus in a Perfectly Competitive Industry Accrues Mainly