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:

International Firms

Companies that engage in business operations across national borders.

Mining Operations

The process of extracting minerals or other geological materials from the earth.

Hydraulic Fracturing

A method of extracting underground resources such as oil and natural gas by injecting liquid at high pressure into subterranean rocks, boreholes, etc., to force open existing fissures and extract oil or gas.

Environmental Groups

Organizations dedicated to promoting environmental protection, conservation practices, and the sustainable management of natural resources.