The long-run industry supply curve is _____ than the short-run industry supply curves because supply is _____ elastic in the long run.

Question

Quizplus · Accepted Answer

In the long run, firms have more time to adjust their production levels and enter or exit the market, making supply more elastic. This increased elasticity leads to a flatter long-run industry supply curve compared to the short-run curves.

The Long-Run Industry Supply Curve Is _____ Than the Short-Run