If a perfectly competitive industry uses only a small share of the available inputs in a resource market,then the long-run market supply curve for the industry will most likely be:

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In a perfectly competitive market, firms can easily enter or exit, and there are many producers and consumers. If the industry uses only a small share of the available inputs in a resource market, then the long-run market supply curve will be relatively flat or horizontal because there are no significant limitations on the production potential of the industry. Therefore, firms can expand their production without affecting the market price. If the industry used most of the available inputs in the market, then the supply curve would be upward sloping because increases in the demand for the industry's products would cause higher input prices, which would in turn increase production costs and cause firms to exit the market.

If a Perfectly Competitive Industry Uses Only a Small Share