Which of the Following Statements Is FALSE

question 168

Multiple Choice

Which of the following statements is FALSE?

• A) A perfectly inelastic supply curve is a vertical line.
• B) Time is an important consideration in determining supply elasticity.
• C) Price elasticity of supply can never equal 1.
• D) A horizontal supply curve is possible.

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Definitions:

Process Costing

An accounting methodology used to allocate production costs to individual units of output when products are virtually indistinguishable from each other.

Similar Goods

Products that are alike in quality and function and can serve as substitutes for one another in the market.

Large Volumes

Refers to the handling or processing of large quantities of goods or transactions, often associated with economy of scale in production or trade.

Distinguishing Characteristics

The unique features or attributes that set an entity or concept apart from others.