A perfectly elastic, long-run market supply curve is most likely to be achieved in
A) a price-taker industry.
B) a constant cost industry.
C) an increasing cost industry.
D) a price searcher industry.

Question

Quizplus · Accepted Answer

In a constant cost industry, the long-run supply curve is perfectly elastic because input prices do not change as industry output changes, allowing firms to supply any quantity at a constant price.

A Perfectly Elastic, Long-Run Market Supply Curve Is Most Likely