1. Long-Run Outcomes in Perfect Competition
Lesson 5.60

2. The Industry Supply Curve
The Industry Supply Curve shows the relationship between price and total output.

3. The Long-Run Industry Supply Curve
The Long-Run Industry Supply Curve will be more elastic (everything is more elastic in the long run.)
As more suppliers enter the market, prices drop

4. Effects of an Increase in Demand
Long-Run and Short-Run
In the Short-Run, and increase in demand will raise prices, and quantity will follow
In the Long –Run, prices will move to a point of zero-profit