The shape of the long-run industry supply curve in a perfectly competitive industry is largely determined by:

Question

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In a perfectly competitive industry, the long-run supply curve is influenced by how input prices change as the industry expands. If input prices remain constant, the long-run supply curve is horizontal; if they increase, the curve slopes upward; if they decrease, it slopes downward.

The Shape of the Long-Run Industry Supply Curve in a Perfectly