The short-run supply curve is _______________ and the long-run supply curve is _______________ in a perfectly competitive market in which all firms have identical cost structures.

Question

Quizplus · Accepted Answer

In the short run, the supply curve is upward sloping due to increasing marginal costs. In the long run, it is perfectly elastic because firms can enter or exit the market, leading to a constant price level.

The Short-Run Supply Curve Is _______________ and the Long-Run Supply