When Will an Industry's Long-Run Supply Curve Be Horizontal at Firms

question 20

Multiple Choice

When will an industry's long-run supply curve be horizontal at firms' break-even price?

• A) When expansion of the industry allows new input markets to develop.
• B) When some firms are more efficient than others.
• C) When specialized skills play a significant role in production.
• D) When firms are identical and there is no factor-price effect.

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