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n a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so (very price sensitive). What is another way to state this fact
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35 votes
35 votes
n a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so (very price sensitive). What is another way to state this fact

User C Tierney
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1 Answer

22 votes
22 votes

Answer:

In the long run, the market will supply any amount of the good at the price where P = min. ATC.

Step-by-step explanation:

Both supply and demand are more elastic in the long run than the short run, which corresponds to a leveling out of the supply and demand curves.

User Lidija
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