In its simplest form,the long-run market supply curve is a(n)
A) horizontal line at the minimum average total cost (ATC).
B) horizontal line at the price where accounting profits equal zero.
C) vertical line at the quantity produced by the firm.
D) upward-sloping line equal to the marginal cost curve.
E) upward-sloping line equal to the marginal cost curve only above the minimum average variable cost (AVC).

Question

Quizplus · Accepted Answer

In the long run, firms can enter or exit the market, so the long-run market supply curve is determined by the minimum average total cost of producing the good. This means that the long-run market supply curve is a horizontal line at the minimum ATC.

In Its Simplest Form,the Long-Run Market Supply Curve Is A(n)