The short and long run market supply curves
A) Are equivalent
B) May differ because the set of firms that are able to produce in a market may change
C) May differ due to free entry in the short run
D) Are always different

Question

Quizplus · Accepted Answer

The short and long run market supply curves may differ because over time, the set of firms able to produce in a market can change. In the short run, some firms may not be able to enter or exit the market due to various constraints, but in the long run, firms can enter or exit, altering the supply curve.

The Short and Long Run Market Supply Curves