Question

In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. What is another way to state this fact? (a) Market supply is much more elastic in the long run than the short run. (b) In the long run, average total cost is minimized. (c) In the long run, price equals marginal cost. (d) Market supply is much less elastic in the long run than the short run.

Answer 1

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

Answer 2

Answer: There has been a drop in demand.

Step-by-step explanation:

The strength and sustainability of a business is the demand in the market, it would be painful and a loss making so many productions and there is little or nothing for demand at the moment. So the target is way to make sure there is a demand on the long run which will match up the production.