Asked by
Cathy Jamero
on Nov 04, 2024
Verified
The long-run industry supply curve is made up of the zero-profit equilibrium levels of output as the industry expands due to entry of new firms.
Long-Run Industry
A period in which all factors of production and costs can be variable, allowing for adjustment to changes in market conditions.
Zero-Profit Equilibrium
A situation where a firm's total revenues exactly equal its total costs, resulting in no economic profit.
Entry
The act of entering or moving into a market or area of business to start operations or activities.
- Assess the repercussions of market entry and exit on supply conditions in the industry.
Verified Answer
AT
Learning Objectives
- Assess the repercussions of market entry and exit on supply conditions in the industry.
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