Author Question: An industry has 1000 competitive firms, each producing 50 tons of output. At the current market ... (Read 63 times)

laurencescou · **on:** Jul 1, 2018

An industry has 1000 competitive firms, each producing 50 tons of output. At the current market price of 10, half of the firms have a short-run supply curve with a slope of 1; the other half each have a short-run supply curve with slope 2.

The short-run elasticity of market supply is A) 1/50
B) 3/10
C) 1/5
D) 2/5
E) none of the above

Question 2

Unequal outcomes are inherently unfair.

Indicate whether the statement is true or false