Price elasticity of supply is more in the long run when compared to the short run. State true or false.

True

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False

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Solution

The correct option is A
True

The statement is true. Price elasticity is more in the long run compared to the short run because firms can enter and exit more easily in the long run.

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The long-run marginal cost curve of a firm is its supply curve for the long run. State true or false.

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