As the Period for Firms to Expand Output Is Lengthened

question 217

Multiple Choice

As the period for firms to expand output is lengthened, the elasticity of the market supply curve will

• A) approach zero.
• B) increase.
• C) decrease.
• D) remain the same since time does not affect the elasticity of market supply.

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Definitions:

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A product that can be used in place of another product, satisfying the same consumer needs or wants.

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Long-Run Marginal Cost, which refers to the additional cost of producing one more unit of a good or service when all inputs are variable in the long term.

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