When the Marginal Cost Is Low, a Factory Running Below

question 68

Multiple Choice

When the marginal cost is low, a factory running below capacity will not find it overly expensive to operate a few more hours per day. In this case, supply is more:

• A) price elastic.
• B) income elastic.
• C) price inelastic.
• D) income inelastic.

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Definitions:

Mafic Minerals

Dark-colored minerals that are rich in magnesium and iron, commonly found in basalt and gabbro.

Igneous Rocks

Rocks formed from the cooling and solidification of molten magma or lava.

Volcanic Glass

A shiny and smooth rock formed when molten lava cools rapidly without crystallizing.

Cooling

The process of losing heat, leading to a decrease in temperature; can refer to geologic formations solidifying from molten states.