In the short run, the supply of a resource will generally be
a. less elastic than in the long run.
b. more elastic than in the long run.
c. equally elastic as the supply of the resource in the long run.
d. inversely related to the elasticity of demand for the product that the resource helps produce.
A
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Sarah buys little stuffed animals for $5 each. They come in different varieties. If the producer stops making (retires) a certain variety, a stuffed animal of that variety will be worth $100; otherwise it is worth $0. There is 50% chance that any variety will be retired. When Sarah buys her next stuffed animal, the expected profit is
A) $50. B) $47.50. C) $45.00. D) $0.
The opportunity cost of an activity is
a. zero if you choose the activity voluntarily b. the amount of money spent on the activity c. the value of the best alternative not chosen d. the sum of benefits from all of the sacrificed alternatives e. the difference between the benefits and the costs of that activity