Asked by Callie Little-Davis on Jun 23, 2024
Verified
If some resources used in the production of a good are only available in limited quantities, then the long run market supply curve will be perfectly elastic.
Long Run Market Supply Curve
A curve showing the relationship between the price of a good and its supply over a longer period, when all input factors can be varied.
Limited Quantities
A restricted amount of a product or resource available for consumption or use.
Perfectly Elastic
Perfectly elastic describes a situation in market demand where consumers will only buy at one price and any deviation from this price leads to zero demand for the good or service.
- Comprehend the principle of limited resources and their impact on the long-term supply curve within a competitive marketplace.
Verified Answer
Learning Objectives
- Comprehend the principle of limited resources and their impact on the long-term supply curve within a competitive marketplace.
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