In a perfectly competitive, the long run supply curve of the industry is the horizontal summation of the long-run marshalls cost curves of individual firms.True or false

Answer 1

False.

In a perfectly competitive market, the long-run supply curve of the industry is determined by the horizontal summation of the long-run marginal cost curves of individual firms, not the Marshall's cost curves. The long-run supply curve represents the quantity that firms are willing and able to supply at different market prices in the long run.