Question

The longdashrun supply curve in a perfectly competitive market states that​ _____. A. the longdashrun quantity remains the same while the equilibrium price varies B. both the longdashrun quantity and the equilibrium price increase C. the longdashrun quantity can vary while the equilibrium price returns to the price at the minimum of the average total cost D. both the longdashrun quantity and the equilibrium price decrease.

Answer 1

Answer: Option C

           

Explanation: Perfect competition refers to a market structure under which there are large number of buyers and sellers each operating at a small level.

In such a market structure the supply curve is a horizontal line that depicts that whatever the quantity is the price will remain the same, that is,  at the equilibrium level.

This happens due to the fact that there are large of number of participants present and no individual have the power to affect the price.

Thus, the correct option is C.