A long-run supply curve is flatter than a short-run supply curve because
A)firms can enter and exit a market more easily in the long run than in the short run.
B)long-run supply curves are sometimes downward sloping.
C)competitive firms have more control over demand in the long run.
D)firms in a competitive market face identical cost structures.

Question

Quizplus · Accepted Answer

In the long run, firms can enter and exit a market more easily than in the short run because there are no fixed inputs. As a result, the long-run supply curve is flatter than the short-run supply curve, which implies that firms are more responsive to price changes in the long run.

A Long-Run Supply Curve Is Flatter Than a Short-Run Supply