If the interdependence of firms is the dominant effect, what will this imply about the shape of the long- run aggregate supply curve?

Question

Quizplus · Accepted Answer

The interdependence of firms implies that the output of one firm affects the output of other firms. This interdependence makes the aggregate supply curve less elastic, as a change in the price level will lead to a smaller change in output than if firms were independent.

If the Interdependence of Firms Is the Dominant Effect, What