Supply curve is ........

Economics- Phase (I & II) Business Cycles

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Supply curve is

Vertical in long run

Flatter in long run

Same in long and short run

Horizontal in both short and long run

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Explanation:

Supply curve is Flatter in long run. All firms have identical cost conditions. Hence, in the case of a constant cost industry, the long-run supply curve LSC is a horizontal straight line (i.e., perfectly elastic) at the price OP, which is equal to the minimum average cost. This means that whatever the output supplied, the price would remain the same.

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