How does the long-run industry supply curve compare to the short-run industry supply curve?
a. The long-run curve is always flatter than the short-run curve.
b. The long-run curve is always steeper than the short-run curve.
c. The long-run curve is based on the assumption that firms can control the price they charge, whereas the short-run curve assumes that the market sets the price.
d. The short-run curve is based on the assumption that firms can control the price they charge, whereas the long-run curve assumes that the market sets the price.
Ans: a. The long-run curve is always flatter than the short-run curve.
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Answer the following statement true (T) or false (F)