When entry and exit behaviour of firms in an industry does not affect a firm's cost structure:

Question

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When entry and exit behaviour of firms in an industry does not affect a firm's cost structure, it means that the long-run average cost curve of the firm is constant irrespective of the output level. This implies that the firm can produce any quantity at the minimum possible cost. In this case, the long-run market supply curve will be horizontal since any firm can enter or exit the industry without affecting the cost or price of the product.

When Entry and Exit Behaviour of Firms in an Industry