Which of the following is TRUE about a perfectly competitive firm in the long run and in the short run?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the supply curve in the short run is usually steeper than in the long run because, in the short run, firms have fixed capacities and cannot easily change the quantity of output in response to price changes. In the long run, firms can adjust their capacities, making the supply curve flatter as firms can more easily enter or exit the market.

Which of the Following Is TRUE About a Perfectly Competitive