Asked by Callie Little-Davis on Jun 23, 2024

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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.
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FS
Faith ShaniaJun 27, 2024
Final Answer :
False
Explanation :
In the long run, if some resources used in the production of a good are only available in limited quantities, it can lead to increasing costs as production expands, making the long run market supply curve upward sloping rather than perfectly elastic.