Why Will the Long-Run Market Supply Curve for Most Products

question 71

Multiple Choice

Why will the long-run market supply curve for most products slope upward to the right?

• A) The firms producing the product will be unable to expand the size of their plant and equipment in the long run.
• B) Economies of scale are present in most industries.
• C) Most products are produced under conditions of constant cost.
• D) Resource prices will rise and push costs upward as the output of the industry expands.

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Definitions:

Electrical Energy

The form of energy resulting from the flow of electric charge, transferred through conductive materials or space, and capable of being converted into other forms of energy like heat or light.

Motor

A device used to convert electric energy into mechanical energy.

Field Loss Relay

A protective device in electrical engineering that detects the loss of magnetic field in a generator and prevents generator damage by disconnecting it from the load or system.

Shunt Field

A winding in electrical machinery, placed in parallel with the armature, used to create a constant magnetic field.