Question

In: Economics

Along an industry long-run supply curve a. input prices are held constant. b. the number of...

Along an industry long-run supply curve

a.

input prices are held constant.
b.

the number of firms in the industry is constant.
c.

economic profits increase at higher rates of output.
d.

economic profits are zero.

Solutions

Expert Solution

"D"

Economic profits are zero, the input price may rise and fall in the market causing the LRSC to rise or fall, the numbers of industry may change and profit remain zero all along the curve.

Rahul Sunny answered 1 year ago
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