Asked by
Zaina Karylle
on Oct 14, 2024
Verified
If there are constant returns to scale in a competitive industry, then the long-run industry supply curve for that industry is horizontal.
Returns to Scale
The rate at which output increases as inputs are increased proportionately.
Industry Supply Curve
A graphical representation that shows the relationship between the price of a good and the total output of that good by all firms in the industry.
- Investigate the elements that shape the supply curves in the industrial sector and their adaptation over time to achieve long-term stability.
- Examine the impact of fixed, variable, and marginal costs on production decisions in both the short run and the long run.
Verified Answer
JZ
Learning Objectives
- Investigate the elements that shape the supply curves in the industrial sector and their adaptation over time to achieve long-term stability.
- Examine the impact of fixed, variable, and marginal costs on production decisions in both the short run and the long run.