The Long-Run Market Supply Curve

question 37

Multiple Choice

The long-run market supply curve

• A) is always more elastic than the short-run market supply curve.
• B) is always perfectly elastic.
• C) has the same elasticity as the short-run market supply curve.
• D) is always less elastic than the short-run market supply curve.

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Definitions:

Short Run

A period in economics during which at least one factor of production is fixed and cannot be changed.

Monopolistic Competitor

A firm that operates in a market with many competitors but differentiates its product from others, giving it some control over its price.

Short Run

Describes a period in economics where at least one factor of production is fixed and cannot be changed, limiting the adjustments a firm can make to its output.

Economic Profits

The surplus left to a business after deducting all costs, including opportunity costs, from its total revenues.