Under what condition is the long-run market supply curve for a competitive market perfectly elastic?

Market Supply Curve

A graphical representation showing the quantity of a good that producers are willing and able to sell at various prices within a specific time period.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied responds infinitely to changes in price.

Long-Run

Refers to a period during which all factors of production and costs are variable, and all possible changes in production capacity can be undertaken.

Comprehend the circumstances in which the long-run supply curve may exhibit perfect elasticity or an upward slope.

Verified Answer

Araceli GonzalezJul 09, 2024

Final Answer :

There must exist a large number of potential entrants, each with the same costs.

Learning Objectives

Comprehend the circumstances in which the long-run supply curve may exhibit perfect elasticity or an upward slope.

Under what condition is the long-run market supply curve for a competitive market perfectly elastic?

Definitions

Learning Objectives

Learning Objectives

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