The long-run supply curve under pure competition will be:

Question

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In the long run, firms can enter or exit the industry, so the supply curve will shift until the industry is in long-run equilibrium. In a decreasing-cost industry, the long-run supply curve will be downsloping because as the price of the good increases, more firms will enter the industry, which will increase the supply of the good and drive down the price. In an increasing-cost industry, the long-run supply curve will be upsloping because as the price of the good increases, more firms will enter the industry, but the higher costs of production will drive up the price of the good.

The Long-Run Supply Curve Under Pure Competition Will Be