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:

Question

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In a perfectly competitive industry that uses only a small share of the available inputs, the industry is unlikely to affect input prices as it expands or contracts. Therefore, the long-run market supply curve is horizontal, indicating constant returns to scale and constant input prices.

If a Perfectly Competitive Industry Uses Only a Small Share