A Long-Run Supply Curve Is Flatter Than a Short-Run Supply

question 277

Multiple Choice

A long-run supply curve is flatter than a short-run supply curve because

• A)firms can enter and exit a market more easily in the long run than in the short run.
• B)long-run supply curves are sometimes downward sloping.
• C)competitive firms have more control over demand in the long run.
• D)firms in a competitive market face identical cost structures.

---

Definitions:

Burial

In geology, this refers to the process of layering sediments on top of each other, which can lead to the formation of sedimentary rocks or the fossilization of organisms.

Compaction

Process by which soil, sediment, and volcanic materials lose pore space in response to the weight of overlying material.

Cementation

The precipitation of a binding material (the cement) around grains in sedimentary rocks.

Rock Types

Rock types are classifications of rocks based on their genesis, including three main categories: igneous, sedimentary, and metamorphic.