Which of the Following Statements Is Not Valid When Supply

question 80

Multiple Choice

Which of the following statements is not valid when supply is perfectly elastic?

• A)The elasticity of supply approaches infinity.
• B)The supply curve is horizontal.
• C)Very small changes in price lead to very large changes in quantity supplied.
• D)The time period under consideration is more likely a short period rather than a long period.

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Definitions:

Replacement Price

The current cost of replacing an asset or inventory with a similar item.

Income-Sharing Ratio

The predetermined formula used among business partners or within an organization to divide profits or losses among stakeholders.

Revenue Per Employee

A measure of the efficiency of the business in generating revenues, which is computed as revenue divided by number of employees.

LLC Members

Individuals or entities that own a portion of a Limited Liability Company (LLC) and have rights and responsibilities as outlined in the LLC's operating agreement.