The long-run supply curve in a constant-cost competitive industry is a(n)_____ line.
A)horizontal
B)vertical
C)downward sloping
D)upward sloping

Question

Quizplus · Accepted Answer

In a constant-cost competitive industry, the costs of production do not change regardless of the industry's output level. Therefore, firms can enter or exit the industry without affecting the market price, resulting in a horizontal long-run supply curve.

The Long-Run Supply Curve in a Constant-Cost Competitive Industry Is