What Happens If Some Resources Used in Production May Only

question 25

Multiple Choice

What happens if some resources used in production may only have limited quantities

• A)The firm's long-run supply curve may be upward sloping.
• B)The firm's short-run supply curve may be downward slopping.
• C)The firm's long-run supply curve may be horizontal.
• D)The firm's short-run supply curve may be horizontal.

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Definitions:

Production Cost

The total expenses incurred in the process of creating a product or service, including raw materials, labor, and overhead costs.

High Supplier Power

A market condition where suppliers have significant influence over the market price and terms of products because of the lack of competition or alternatives.

Threat from Substitutes

The risk that alternative products or services may satisfy the same customer needs, potentially reducing demand for the current product.

Levels of Rivalry

Refers to the intensity of competition between firms in a market, ranging from monopolistic to perfectly competitive scenarios.