In the long run the market supplya. must always be horizontal. b. could be upward sloping if the cost of production falls as new firms enter the market. c. could be upward sloping if the cost of production rises as new firms enter the market. d. could be upward sloping if technological improvements lower the cost of producing in the market.

Question

Cory Herman

Business

20 September, 18:11

In the long run the market supplya. must always be horizontal. b. could be upward sloping if the cost of production falls as new firms enter the market. c. could be upward sloping if the cost of production rises as new firms enter the market. d. could be upward sloping if technological improvements lower the cost of producing in the market.

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Answers (1)

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Brewster · Answer 1

The correct answer is C

Explanation:

The market supply is the aggregate quantity of the service or the good, which all the producers or manufactures are willing to offer or provide at the prevailing set of the prices during a particular time period.

In short, it is the sum or total of all the individual producer supplies. And in the long term, it states that it will be for a longer time or for a long time period. So, in the long term, the market supply would be upward sloping when the production cost increases when the new firms will enter the market.