Industry''s long-run supply curve, Microeconomics

The Industry's Long-Run Supply Curve

* Long-Run Elasticity of Supply

  1) Constant-cost industry

  • Long run supply is horizontal
  • Small increase in price will induce extremely large output increase
  • Long run supply elasticity is considerably large
  • Inputs would be available readily

  2) Increasing cost industry

  • Long run supply is sloping upward and elasticity is positive
  • The slope will depend on rate of increase in input cost
  • Long run elasticity will usually be greater than short run elasticity of supply
Posted Date: 10/12/2012 5:52:19 AM | Location : United States







Related Discussions:- Industry''s long-run supply curve, Assignment Help, Ask Question on Industry''s long-run supply curve, Get Answer, Expert's Help, Industry''s long-run supply curve Discussions

Write discussion on Industry''s long-run supply curve
Your posts are moderated
Related Questions

Commodities A) It is well documented that commodity prices are very volatile when compared to other asset classes.  Discuss factors that cause volatility in the commod

E-COMMERCE ? Electronic commerce or e-commerce refers to a large range of online business actions for  services and  products. It in addition pertains to "any type of  business

Movements of the demand curve itself, either to the left or right are known as changes in demand.  A change in demand is caused by a change in one or more of the nonprice determina

Average Fixed Cost (AFC): AFC is the fixed cost per unit of output. AFC = TFC/y Since the TFC is constant throughout the short run, as y increases AFC will decline. Therefore

What are the three major types of unemployment?   a) Frictional b) Structural and c) Cyclical unemployment. Cyclical unemployment is broadly spread by an economy durin

Determinants of Private Demand - Unemployment Rate Unemployment rates linked to specific courses of study can be useful indicators to determine investment in education. Their


Example: The Value of Clean Air Air is free in sense that we do not pay to breathe it. Question: Are benefits of cleaning up air worth the costs? People pay extra to buy

reaction of mechanism of nitrous acid with benzene diazonium chloride in presence of Cuperous oxide