The long-run market supply curve ?
Correct answer: A. is always more elastic than the short-run market supply curve.
- A. is always more elastic than the short-run market supply curve.
- B. is always perfectly elastic
- C. has the same elasticity as the short run market supply curve
- D. is always less elastic than the short-run market supply curve
Explanation
The long run permits firms to enter or leave and to adjust all inputs, so market supply normally responds more strongly to price changes than in the short run. Thus long-run supply is generally more elastic.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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