Firm A and Firm B produce the same goods but with different inputs. If the inputs used by firm A are more easily available than the inputs used by firm B, then which of the following statements is true?
A) The elasticity of supply of firm A and firm B will be equal.
B) The elasticity of supply of firm A will be higher than the elasticity of supply of firm B.
C) The elasticity of supply of firm A will be lower than the elasticity of supply of firm B.
D) The elasticity of supply of firm A and firm B cannot be compared without information on price change.
B
Economics
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