As the period for firms to expand output is lengthened, the elasticity of the market supply curve will
a. approach zero.
b. increase.
c. decrease.
d. remain the same since time does not affect the elasticity of market supply.
B
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Refer to Figure 4-3. What is the total amount that Kendra is willing to pay for 3 ice cream cones?
A) $2.50 B) $7.50 C) $9.00 D) $13.50
Long-run average cost is never greater than short-run average cost because in the long run
A) capital costs equal zero. B) the firm can move to the lowest possible isocost curve. C) wages always increase over time. D) wages always decrease over time.
Which of the following is considered to be the main disadvantage of the sole proprietorship form of business organization?
a. The proprietor and the firm are legally inseparable. b. The proprietor has personal independence. c. The focus of the proprietorship is on local markets. d. The access to local and family labor promotes legal dependence. e. The lack of a bureaucratic structure impedes growth.
How did Keynes propose to solve the problem of high unemployment?
A) Increase the growth rate of the money supply. B) Allow wages to decline, so that firms will want to hire more workers. C) Put on wage and price controls, so wages won't rise and firms won't have to lay people off to cut costs. D) Have the government increase its demand for goods and services.