For a Product with a Constant or Gently Increasing Opportunity

question 342

Multiple Choice

For a product with a constant or gently increasing opportunity cost of producing additional units,as more is produced,we expect that

• A) demand is price elastic.
• B) supply is price elastic.
• C) demand is price inelastic.
• D) supply is price inelastic.
• E) demand is unit elastic.

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Definitions:

Social Exchange Theory

A conceptual framework suggesting that human interactions are transactions aimed at maximizing benefits while minimizing costs.

Stereotyped

Characterized by widely held but fixed and oversimplified images or ideas of a particular type of person or thing.

Competent

Having the necessary ability, knowledge, or skill to do something successfully.

Task Specialist

In groups, a member who pushes the group toward the attainment of its goals; a person who contributes many ideas and suggestions to the group.