When entry and exit behaviour of firms in an industry does not affect a firm's cost structure,what is the shape of the long-run market supply curve

Question

Quizplus · Accepted Answer

When entry and exit behavior of firms in an industry does not affect a firm's cost structure, the long-run market supply curve must be horizontal. This means that firms can enter or exit the market without affecting the equilibrium price or quantity in the long run.

When Entry and Exit Behaviour of Firms in an Industry