Which of the following is true of an input that is hired by firms in several industries in the long run?
A)The price of the input is higher in the industry where demand for the input is higher.
B)The price of the input is higher in the industry where the elasticity of demand for the input is higher.
C)The price of the input will remain the same across all the industries.
D)The price of the input will be higher in the industry that has a large number of firms.

Question

Quizplus · Accepted Answer

In the long run, the input market is more competitive, and firms have more flexibility to switch to substitute inputs or change their production methods to reduce their demand for the input. These factors contribute to a more uniform price for the input across industries. Therefore, the price of the input will remain the same across all the industries.

Which of the Following Is True of an Input That