Industry''s long-run supply curve, Microeconomics

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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

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