Figure 12-1

-If Figure 12-1 indicated the short-run and long-run supply curves for a resource,which of the following would probably be the long-run supply curve of the resource?

Question

Figure 12-1
Figure 12-1 -If Figure 12-1 indicated the short-run and long-run supply curves for a resource,which of the following would probably be the long-run supply curve of the resource? A) Q₂ B) Q₃ C) S<sub>b</sub> D) S<sub>a</sub>

Figure 12-1 -If Figure 12-1 indicated the short-run and long-run supply curves for a resource,which of the following would probably be the long-run supply curve of the resource? A) Q₂ B) Q₃ C) S<sub>b</sub> D) S<sub>a</sub>

-If Figure 12-1 indicated the short-run and long-run supply curves for a resource,which of the following would probably be the long-run supply curve of the resource?

Quizplus · Accepted Answer

The long-run supply curve represents the quantity supplied in the long-run when all factors of production can be adjusted. In the given figure, S_a represents the long-run supply curve because it is flatter than the short-run supply curves, indicating that resources can be adjusted over time to produce more output. Therefore, in the long run, firms can produce more output at lower prices. Q₃ is not the long-run supply curve because it represents a point on the short-run supply curve, and Q₂ is not the long-run supply curve because it is a point on the short-run supply curve where the quantity supplied is less than in the long-run.

Figure 12-1 -If Figure 12-1 Indicated the Short-Run and Long-Run Supply Curves