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    Long run market supply curve

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    The daily cost of making pizza in Seattle is C(Q) =4Q + (Q2 /40), plus an avoidable fixed cost of $10; marginal cost is MC =4 +(Q/20). In the long run firms may enter the market freely. What is the long-run market supply curve?

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    The firm's long run supply curve is the portion of the marginal cost curve that is above the minimum value of the average cost curve. Since the firm is in perfect competition, we also know that P = MC = 4 +(Q/20) in the long ...

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    The expert examines the long run market supply curve.