The Easier It Is for a Firm to Acquire Additional

question 87

Multiple Choice

The easier it is for a firm to acquire additional amounts of the factors of production they use,the

• A) smaller the numerical value of the price elasticity of supply.
• B) less elastic supply will be.
• C) greater the opportunity for earning a positive profit.
• D) more elastic supply will be.
• E) more inelastic supply will be.

---

Definitions:

Learning Curve

The concept that people improve efficiency and decrease cost over time as they gain experience in a particular task or operation.

Marginal Productivity

The additional output that is produced by using one more unit of a particular input while keeping other inputs constant.

Marginal Cost

The additional expense incurred from producing and selling one more unit of a good or service.

Profits

The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.