An industry where a change in the number of firms does not affect the prices of the resources used in the industry will have a long-run supply curve that is
A)vertical.
B)horizontal.
C)upsloping.
D)downsloping.

Question

Quizplus · Accepted Answer

In an industry where the entry or exit of firms does not affect resource prices, the long-run supply curve is horizontal. This indicates that the industry can expand or contract without affecting the prices of inputs, allowing the supply to adjust at the same price level.

An Industry Where a Change in the Number of Firms