As the Period for Firms to Expand Output Is Lengthened

question 217

Multiple Choice

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.

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Definitions:

Revocations

The act of officially cancelling or withdrawing something, such as a license, permission, or legal right.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise when the other party has reasonably relied on that promise to their detriment.

Unilateral Contracts

Agreements in which one party makes a promise in exchange for the other party's performance, not a promise in return.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise if the other party has reasonably relied on that promise to their detriment.