If a Supply Curve Is Horizontal,it Is Said to Be

question 77

True/False

If a supply curve is horizontal,it is said to be perfectly elastic and the price elasticity of supply approaches infinity.

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Definitions:

MRT (Marginal Rate Of Transformation)

The rate at which goods or services can be transformed into other goods or services, reflecting the opportunity cost of shifting resources in production.

Marginal Rates

The additional or incremental tax rate applied to every additional dollar of income.

First Theorem

Likely refers to the First Fundamental Theorem of Welfare Economics, which states that competitive markets lead to an efficient allocation of resources under certain conditions.

Welfare Economics

Welfare Economics is a branch of economics that focuses on the optimal allocation of resources and goods to maximize the social welfare or well-being of the community.