Table 14-6
There are 500 identical firms in a competitive market. The firms do not use any resources that are available in limited quantities, and all of them have the following cost structure:

-Refer to Table 14-6.What is the shape of the long-run supply curve for this market

Question

Table 14-6
There are 500 identical firms in a competitive market. The firms do not use any resources that are available in limited quantities, and all of them have the following cost structure:

-Refer to Table 14-6.What is the shape of the long-run supply curve for this market

Quizplus · Accepted Answer

In the long-run, the supply curve is horizontal at the price where firms earn zero economic profit. This occurs at the price equal to the minimum of the average total cost, which is $5.00 in this case.

Table 14-6 There Are 500 Identical Firms in a Competitive Market. the Market