In the long run, the cost of production and the length of the firm's supply chain determine the price of a product.

Question

Quizplus · Accepted Answer

In the long run, the price of a product is determined by market demand and supply dynamics, not just the cost of production and the length of the supply chain. Other factors such as competition, product differentiation, and consumer preferences also play significant roles in pricing.

In the Long Run, the Cost of Production and the Length