In the long run the market supply
A)must always be horizontal.
B)could be upward sloping if the cost of production falls as new firms enter the market.
C)could be upward sloping if the cost of production rises as new firms enter the market.
D)could be upward sloping if technological improvements lower the cost of producing in the market.

Question

Quizplus · Accepted Answer

In the long run, the market supply curve could be upward sloping if the cost of production rises as new firms enter the market due to factors like increased demand for inputs, which raises their prices.

In the Long Run the Market Supply