The long-run industry supply curve is made up of the zero-profit equilibrium levels of output as the industry expands due to entry of new firms.

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The long-run industry supply curve reflects the relationship between price and the total output of an industry, assuming free entry and exit of firms. As new firms enter the industry in response to profits, the supply increases, leading to a reduction in prices until only normal profits (zero economic profit) are earned, indicating a zero-profit equilibrium at various levels of output as the industry expands.

The Long-Run Industry Supply Curve Is Made Up of the Zero-Profit