Supply Will Tend to Be More Price Elastic When A

question 42

Multiple Choice

Supply will tend to be more price elastic when a:

• A) factory has spare capacity.
• B) factory is running at capacity.
• C) fast-food restaurant is facing falling demand.
• D) fast-food restaurant loses an oven.

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Definitions:

Drones

UAVs are aircraft systems that can be operated from a distance or navigate independently using flight plans programmed into their onboard software.

Average Variable Costs

The total variable costs of production divided by the quantity of output produced, representing the per-unit variable cost of production.

Drones

Unmanned aerial vehicles (UAVs) that are used for various purposes, including surveillance, delivery, or recreation.

TFC

Total Fixed Costs, referring to the sum of all costs that remain constant regardless of the level of output or production.