Supply curve is

1.	Supply curve is
Answer» FLATTER in long run 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.

Answer»

FLATTER in long run

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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Supply curve is

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