Asked by Marisa Tavarez on Jul 26, 2024
Verified
The long-run supply curve in a competitive market is more elastic than the short-run supply curve.
Long-run Supply Curve
A graphical representation that shows the relationship between the price of a good and the quantity supplied over a period long enough for producers to adjust all of their inputs.
Short-run Supply Curve
A graphical representation showing the relationship between the price of a good and the quantity supplied over a short period, holding some inputs fixed.
Elastic
Describes a situation where the quantity demanded or supplied of a good or service is sensitive to changes in price.
- Distinguish between the elasticity of supply curves in the short run and long run in competitive markets.
Verified Answer
AR
Aymen RavjaniJul 28, 2024
Final Answer :
True
Explanation :
In the long run, firms can adjust all of their inputs, enter or exit the market, and adapt to changes in demand or technology, making the supply more responsive to price changes, hence more elastic, compared to the short run where some inputs are fixed.
Learning Objectives
- Distinguish between the elasticity of supply curves in the short run and long run in competitive markets.