An industry's supply curve is more likely to be elast...
An industry's supply curve is more likely to be elastic when firms are
Enjoying free entry and exit
Operating at full capacity
Operating below capacity
Maximizing profits
Correct answer is A
Elastic supply curves indicate that the quantity supplied responds to price changes in a greater than proportional manner. An industry supply curve would most likely be elastic if the industry is operating in a market where there is free entry and exit.
The industry may decide to exit the market if the prices offered for its products are not good enough, and decide to come back when the products are well priced.
Which of the following is NOT illustrated by the production possibility curve? ...
Time deposit is the same thing as ...
The shape of a production possibility frontier is determined by the ...
A major feature of an underdeveloped economy is ...
Average product is less than marginal product when ...
An argument for the use of commercial policy rest on the need to ...
Consumer surplus tends to be higher when demand is ...
The distribution of goods is said to be completed when it reaches the ...