in-the-long-run-why-does-the-market-supply-curve-stabilize-at-the-minimum-averag

Question

In the long run, why does the market supply curve stabilize at the minimum average total cost (ATC) despite changes in demand?

Accepted Answer

Because firms enter and exit the market until economic profits are zero.

Answer

Because the government regulates prices to ensure stability.

Answer

Because technological advancements always reduce costs.

Answer

Because consumer preferences remain constant over time.