-The Curve LS0 in the Above Figure Is the Long-

question 146

Multiple Choice

-The curve LS0 in the above figure is the long- run supply curve in a perfectly competitive market. The short- run market supply curve shifts from S0 to S2 as the

• A) wage rate falls.
• B) external economies rise.
• C) number of firms increases.
• D) number of firms decreases.