A long-run supply curve that is more elastic than a short-run supply curve results from which of the following circumstances?

Question

Quizplus · Accepted Answer

In the long run, firms have more time to adjust their production levels and enter or exit the market based on changes in demand and prices, making the supply curve more elastic. In the short run, firms may be constrained by fixed inputs (e.g. factory capacity) and find it more difficult to adjust their output, resulting in a less elastic supply curve. Choices A, B, and D are irrelevant to the question and do not explain why the long-run supply curve is more elastic.

A Long-Run Supply Curve That Is More Elastic Than a Short-Run