Can You Explain The Long Run Supply Curve Of An Industry Under Perfect Competition?

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Muhammad Abdullah786 Profile
The long run supply curve is a curve which shows how many units of commodity the existing and expected firms in the industry are prepared. To sell at different prices when they can change their fixed as well as variables factors of production
While discussing the long run equilibrium of the firm we assume that the cost of production of all the firms remain the same. For all the firms and industries operate under same cost conditions. But in real life this assumption losses its importance when we see that different industries operate under different cost conditions.

The industries whose cost of production increase along with their expansion operates under increasing costs while the industries whose costs of production remain the same operate under the constant cost. The industries whose cost of production decreases along with their expansion operate under decreasing cost. Accordingly in three above mentioned cases the level of prices and output will be different and supply curve of industries swill also be different.

In a country because of increase in population change in income distribution or change in the tastes of the people the demand for any commodity may arise.
thanked the writer.
Anonymous commented
This answer only enlarges on the question: It does not offer an answer. The long-run supply curve is an interesting idea that needs exploring.

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