If a perfectly competitive industry uses only a small share of the available inputs in a resource market, what shape is the long-run market supply curve for the industry most likely to be?

Question

Quizplus · Accepted Answer

In a perfectly competitive industry that uses only a small share of the available inputs, the long-run market supply curve is most likely to be horizontal. This indicates that the industry can expand or contract without affecting input prices, allowing it to supply any quantity at the same price.

If a Perfectly Competitive Industry Uses Only a Small Share