A Perfectly Elastic Supply Curve Is

question 68

Multiple Choice

A perfectly elastic supply curve is:

• A)​upward sloping to the right.
• B)​downward sloping to the left.
• C)​horizontal.
• D)​vertical.

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Definitions:

Economic Profits

The total revenue of a business minus its explicit and implicit costs; a measure of incremental gain over the total costs, including opportunity costs.

Supply Curve

A graph showing the relationship between the price of a good and the quantity supplied by producers.

Long-run Equilibrium

A state in which all factors of production and outputs are variable, allowing for the adjustment of all inputs, leading to a balanced economic condition over time.

Zero Economic Profits

Occurs when a firm earns just enough revenue to cover its total costs, including opportunity costs, but no more.