Supply is more elastic over long periods than over short periods because: multiple choiceproducers can make fewer adjustments in the long run than in the short run.consumers can make fewer adjustments in the long run than in the short run.producers can make more adjustments in the long run than in the short run.consumers can make more adjustments in the long run than in the short run.

A market supply curve is more elastic in the long run than in the short run because aproducers’ marginal costs are increasing bthe quantity demanded increases at a steady rate cthere are no fixed inputs in the long run dof constant returns to scale in production eof diseconomies of scale in production

Item2Item 2To economists the main difference between "the short run" and "the long run" is that:Multiple Choicethe law of diminishing returns applies in the long run, but not in the short run.in the long run all factors of production are variable, while in the short run at least one factor of production is fixed.fixed costs are more important to decision making in the long run than they are in the short run.in the short run all factors of production are fixed, while in the long run all factors of production are variable.

In the theory of production the distinction between the very short period, short period, long period and very long period are due to the way production is adjusted for variations in demand. Discuss the probable differences in the approach of producers to demand increases and decreases in;Very short periodShort periodLong period andVery long period.

The short-run supply curve of a purely competitive producer is based on its:Multiple ChoiceAVC curve.ATC curve.AFC curve.MC curve.

Which statement is true? Group of answer choicesIn an increasing-cost industry, a firm’s long-run supply curve is perfectly elastic at the minimum of ATC and the long- run industry supply curve is upward sloping.In an increasing-cost industry, a firm’s long-run supply curve is upward sloping and the long run industry supply curve is also upward sloping.In a decreasing-cost industry, a firm’s long-run supply curve is upward sloping and the long-run industry supply curve is perfectly elastic at the minimum of ATC.In an increasing-cost industry, a firm’s long-run supply curve is upward sloping and the long-run industry supply curve can either be perfectly elastic or upward sloping, depending on the circumstances.None of the above.