In the short run, there are 500 identical firms in a competitive market. The firms do not use any resources that are available in limited quantities, and each of them has the following cost structure: The long-run supply curve for this market is
A)positively sloped for all prices above $10.
B)horizontal at a price of $5.
C)horizontal at a price of $6.
D)horizontal at a price of $7.

Question

In the short run, there are 500 identical firms in a competitive market. The firms do not use any resources that are available in limited quantities, and each of them has the following cost structure:  The long-run supply curve for this market is
A)positively sloped for all prices above $10. 
B)horizontal at a price of $5. 
C)horizontal at a price of $6. 
D)horizontal at a price of $7.

Quizplus · Accepted Answer

The Answer of In the short run, there are 500 identical firms in a competitive market. The firms do not use any resources that are available in limited quantities, and each of them has the following cost structure:  The long-run supply curve for this market is
A)positively sloped for all prices above $10. 
B)horizontal at a price of $5. 
C)horizontal at a price of $6. 
D)horizontal at a price of $7.

In the Short Run, There Are 500 Identical Firms in a Competitive