Author Question: If a 10 percent increase in price leads to a 20 percent increase in the quantity supplied, then the ... (Read 70 times)

nelaaney · **on:** Jun 30, 2018

If a 10 percent increase in price leads to a 20 percent increase in the quantity supplied, then the elasticity of supply is 0.5.
a. True
b. False
Indicate whether the statement is true or false

Question 2

The short run is not the same length of time for all firms and industries because:
a. entrepreneurs have different tastes and preferences.
b. the average product of labor varies across industries.
c. the life span of capital and the extent of capital specialization will vary across firms and industries.
d. The marginal product of capital begins to diminish at different levels of capital utilization across firms.