If a Resource Is Exhaustible, Its Supply Curve in a Single

question 24

Multiple Choice

If a resource is exhaustible, its supply curve in a single period is:

• A)downward sloping.
• B)perfectly elastic.
• C)upward sloping.
• D)perfectly inelastic.

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Definitions:

Fixed Resource

A resource or asset in production whose quantity cannot easily be increased or decreased in the short term.

Short Run

in economics, refers to a period during which at least one input, such as plant size, is fixed and cannot be changed.

Long Run

A period of time in economics where all factors of production and costs are variable, allowing for complete adjustment to changes in market conditions.

Fixed Resource

An asset or input whose quantity cannot be altered in the short run for the production of goods and services.