(Solved): Discuss the shape of the long-run supply curve in a perfectly competitive market. The long-run supp ...

Discuss the shape of the long-run supply curve in a perfectly competitive market. The long-run supply curve is A. an upward-sloping line equal to the sum of each firm's marginal cost curve. B. an upward-sloping line equal to the sum of the portion of each firm's marginal cost curve that is above minimum average variable cost. C. a horizontal line equal to the minimum point on the typical firm's average total cost curve. D. an upward-sloping line equal to the sum of each firm's supply curve. E. a horizontal line equal to the minimum point on the typical firm's average variable cost curve. Suppose that the perfectly competitive market illustrated in the graph to the right is initially in long-run equilibrium \( \left(a t \mathrm{P}_{1}\right. \) ) and then there is a permanent increase in the demand for the product (to \( \mathrm{D}_{2} \) ). Show how the market adjusts in the long run. 1.) Use the line drawing tool to add either a new demand curve or a new supply curve showing the market in long-run equilibrium. Properly label this line. 2.) Use the point drawing tool to identify the new long-run market equilibrium price and quantity. Properly label this point Carefully follow the instructions above, and only draw the required objects