What is the shape of the long-run industry supply curve in a perfectly competitive industry largely determined by?

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Quizplus · Accepted Answer

The shape of the long-run industry supply curve in a perfectly competitive industry is largely determined by the price of inputs as the industry expands. If input prices increase as output increases, the long-run supply curve will be upward sloping. If input prices remain constant, the curve can be horizontal, indicating constant returns to scale.

What Is the Shape of the Long-Run Industry Supply Curve