In the long run, the supply curve for a perfectly competitive industry:
A) will shift to the right if new ﬁrms enter the industry.
B) is the sum of all individual ﬁrms' average total cost curves.
C) is horizontal at the market price.
D) is the same as the marginal cost curve over all levels of output.

Question

Quizplus · Accepted Answer

In a perfectly competitive industry, the long-run supply curve will shift to the right if new firms enter the industry. This is because the entry of new firms increases the total quantity of goods or services supplied at any given price, effectively shifting the supply curve to the right. The other options do not accurately describe the long-run supply curve in a perfectly competitive industry.

In the Long Run, the Supply Curve for a Perfectly