If a particular perfectly competitive industry uses only a small fraction of the supply of any of its inputs,the long run supply curve for that industry will tend to be:

Question

Quizplus · Accepted Answer

In a perfectly competitive industry, the long run supply curve represents the minimum efficient scale (MES) of production for each firm in the industry. When a small fraction of an input is used, the industry can expand its production without facing any increase in input costs, resulting in a horizontal long run supply curve.

If a Particular Perfectly Competitive Industry Uses Only a Small