Question

Why is a long-run supply curve is flatter than a short-run supply curve?

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.

Answer 1

a. firms can enter and exit a market more easily in the long run than in the short run.

Step-by-step explanation:

Over the long run, there is easy entry and exit of firms. Firms can adjust their production scale easily. Then we conclude that supply is flatter.