The key difference between supply in the short run and supply in the long run is that we assume that firms:

Question

Quizplus · Accepted Answer

In the long run, firms have the ability to enter or exit the market, which affects the overall supply. In the short run, however, firms are assumed to be operating under fixed constraints, so the supply cannot be easily adjusted by adding or removing firms from the market. Therefore, option B is the correct answer.

The Key Difference Between Supply in the Short Run and Supply