Why Do Some Firms Experience Elastic Supply Curves at Low

question 207

Multiple Choice

Why do some firms experience elastic supply curves at low levels of quantity supplied and more inelastic supply curves at higher levels of quantity supplied

• A)At lower levels of quantity supplied, these firms have idle capacity.
• B)At higher levels of quantity supplied, these firms incur lower production costs.
• C)At lower levels of quantity supplied, these firms incur higher production costs.
• D)At higher levels of quantity supplied, these firms have idle capacity.

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Definitions:

Tympanic Membrane

Otherwise known as the eardrum, it is a thin layer that separates the outer ear from the middle ear and vibrates in response to sound waves.

Elasticity

The ability of an object or material to resume its normal shape after being stretched or compressed.

Tympanic Membrane

The eardrum; a thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves.