If all existging firms and all potential firms have the samecost curves, there a

Question

If all existging firms and all potential firms have the samecost curves, there are no inputs in limited quantities, and themarket is characterized by free entry and exit, then thelong-run a.market supply curve is equal to the sum of marginalcosts. b.supply curve for the market slope downward. c.market supply curve must slope upward d.supply curve for the market is horizontal and equal to theminimum of long-run average cost for each firm. If all existging firms and all potential firms have the samecost curves, there are no inputs in limited quantities, and themarket is characterized by free entry and exit, then thelong-run a.market supply curve is equal to the sum of marginalcosts. b.supply curve for the market slope downward. c.market supply curve must slope upward d.supply curve for the market is horizontal and equal to theminimum of long-run average cost for each firm.

Explanation / Answer

D. Supply curve is horizontal and equal to the minimum long-run average cost of each firm.

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