The long-run market supply curve in a competitive market will
A)always be horizontal.
B)be the portion of the MC that lies above the minimum of AVC for the marginal firm.
C)typically be more elastic than the short-run supply curve.
D)be above the competitive firm's efficient scale.

Question

Quizplus · Accepted Answer

In the long run, firms can enter or exit the market, and all inputs can be adjusted. This flexibility makes the long-run market supply curve typically more elastic than the short-run supply curve, where some inputs are fixed, limiting firms' ability to respond to price changes.

The Long-Run Market Supply Curve in a Competitive Market Will