The reason long run market supply curves are shallower than short run market supply curves is because individual firm supply curves are shallower in the long run than in the short run.

Question

Quizplus · Accepted Answer

The long run market supply curve can be shallower than the short run curve not because individual firm supply curves are shallower, but because in the long run, firms can enter or exit the market, which affects the overall market supply differently than individual firm adjustments to their supply in the short run.

The Reason Long Run Market Supply Curves Are Shallower Than