In the long run
A) the supply curve for all firms is more elastic than in the short run.
B) more firms may enter the industry.
C) plants may change facility capacity.
D) the supply curve for all firms is more elastic than in the short run, more firms may enter the industry, and plants may change facility capacity.

Question

Quizplus · Accepted Answer

In the long run, firms have the flexibility to adjust all factors of production, including entering or exiting the market and changing the scale of their operations. This increased flexibility makes the supply curve more elastic, allows for entry or exit of firms, and permits changes in facility capacity.

In the Long Run