Which of the following is the third step in deriving a flat long-run supply curve?
A) market demand increases
B) market supply increases until price returns to the original value
C) firms earn extra-normal profits

Question

Quizplus · Accepted Answer

The third step in deriving a flat long-run supply curve is that market supply increases until the price returns to the original value. This means that firms are able to adjust their production in response to market demand and supply conditions without incurring any extra costs or experiencing any delays. As a result, the supply curve becomes flatter in the long run, indicating that firms are able to supply a larger quantity at the same price.

Which of the Following Is the Third Step in Deriving