Long-Run Supply quantity, industry, following, long

MeteorShower

Which of the following is least likely a characteristic of the long-run industry supply curve?

A) The long-run supply curve is flatter than the short-run supply curve.


B) In the long run, there will be a greater change of quantity supplied for a given price change, than in the short run.


C) The long-run supply curve is less elastic than the short run supply curve.

Your answer: A was incorrect. The correct answer was C) The long-run supply curve is less elastic than the short run supply curve.
The long-run supply curve is more elastic and flatter than the short-run supply curve. In the long-run, firms have greater flexibility to alter production scale and methods. Both remaining items in this question are true for the long-run supply curve.

I thought the LRAS was vertical and perfectly inelastic. What am I missing here?

Beatnik

The answer is C), since LR supply is generally more elastic than SR supply. SR supply is restricted by production capabilities. However, in the LR, you can build more factories.