The long-run supply curve under pure competition is derived by observing what happens to market price and quantity when market
A) demand changes and all consequent long-run adjustments have occurred.
B) supply changes and all consequent long-run adjustments have occurred.
C) technology changes and all consequent long-run adjustments have occurred.
D) regulation changes and all consequent long-run adjustments have occurred.

Question

Quizplus · Accepted Answer

The long-run supply curve under pure competition is derived by observing changes in market demand and the resulting adjustments in the market, as firms enter or exit the industry until economic profits are zero, leading to a new equilibrium.

The Long-Run Supply Curve Under Pure Competition Is Derived by Observing