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?作者: Beatnik 时间: 2011-7-11 18:42
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.
