Asked by Vasilis Lymberis on Jul 15, 2024
Verified
Long-run supply curves for a purely competitive industry can never be downsloping.
Long-Run Supply Curves
A graphical representation showing the relationship between the price of a good and the quantity supplied over a longer period, considering adjustments in factors of production.
Purely Competitive
A market structure characterized by many buyers and sellers, all of whom are price takers offering homogenous products.
Downsloping
Characteristic of a curve or line on a graph that shows a decrease in value as it moves from left to right, commonly used in economics to describe demand curves.
- Familiarize with the conduct of long-range supply curves following changes in sector costs and market entry or exit activities.
Verified Answer
Learning Objectives
- Familiarize with the conduct of long-range supply curves following changes in sector costs and market entry or exit activities.
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