The short-run supply curve of a purely competitive industry tends to be steeper than the long-run supply curve.

Question

Quizplus · Accepted Answer

In the short run, firms in a purely competitive industry have fixed capacities, leading to a steeper supply curve as output cannot be easily adjusted. In the long run, firms can enter or exit the market, and adjust their capacities, making the supply curve flatter as output can be more flexibly adjusted to price changes.

The Short-Run Supply Curve of a Purely Competitive Industry Tends