Business, 01.07.2019 19:40 saucyboyFredo

True or false: for high levels of quantity supplied where firms have reached near maximum capacity, supply becomes more elastic because firms may need to invest in additional capital in order to further increase production.

Answers: 1

Show answers

Answers

False Once firm has reached maximum production capacity, firm will need to make additional investment to expand production plants and to achieve this , firm will need to increase the prices of the product which will affect the supply elasticity.

Answer from: dakotaadkins1818

The given statement is true. The high level of supply will lead to additional capital for the further production of the goods.

Further Explanation:

Elasticity of supply:

The elasticity of supply refers to the measurement of the change in quantity supplied due to the change in the price of the goods. It is also known as the price elasticity of supply. The increase in the demand for a product will increase the price and supply. Therefore, the speed of increase in the supply is known as the elasticity of supply.

Effect of the high level of quantity supplied:

The high level of the quantity provided can be the result of the high level of demand for the product. The increase in the demand for the product will increase the supply and price of the goods. It will result in the elastic supply. The increase in the supply will enforce the manufacturer to engage additional resources to produce goods for the demand of the goods.

Thus, the given statement is true. The high level of supply will lead to additional capital for the further production of the goods.

Learn More:

1. Learn more about the types of market

2. Learn more about the product leadership

3. Learn more about the demand and supply

Answer Details:

Grade: Middle school

Chapter: Elasticity of supply

Subject: Economics

Keywords: True or false, high, levels, quantity, supplied, firms, reached, maximum, capacity, supply, becomes, elastic, firms, invest, additional, capital, order, further, increase, production.

Answer from: yoyo1542

The statement that for high levels of quantity supplied where firms have reached near maximum capacity, supply becomes more elastic is True.

This is because firms may need to invest in additional capital in order to further increase production.

What is production?

Production can be regarded as the process of utilization of material inputs as well aa immaterial input for consumption.

Learn more about production at

Answer from: Quest

clarify customers’ doubts only when asked.

Answer from: Quest

107x106 is the answer

Other questions on the subject: Business

Business, 22.06.2019 01:40, dperdomo0015

Costs of production that do not change when output changes. question 17 options: total revenuefixed incometotal costfixed cost

Answers: 1

continue

Business, 22.06.2019 07:30, yzafer3971

An instance where sellers should work to keep relationships with customers is when they instance where selllars should work to keep relationships with customers is when they feel that the product

Answers: 1

continue

Business, 22.06.2019 10:30, volleyballfun24

Trecek corporation incurs research and development costs of $625,000 in 2017, 30 percent of which relate to development activities subsequent to ias 38 criteria having been met that indicate an intangible asset has been created. the newly developed product is brought to market in january 2018 and is expected to generate sales revenue for 10 years. assume that a u. s.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with ifrs. thus, adjustments to convert from u. s. gaap to ifrs must be made. ignore income taxes. required: (a) prepare journal entries for research and development costs for the years ending december 31, 2017, and december 31, 2018, under (1) u. s. gaap and (2) ifrs. (c) prepare the entry(ies) that trecek would make on the december 31, 2017, and december 31, 2018, conversion worksheets to convert u. s. gaap balances to ifrs.

Answers: 1

continue

Business, 22.06.2019 20:30, lareynademividp0a99r

The smelting department of kiner company has the following production and cost data for november. production: beginning work in process 3,700 units that are 100% complete as to materials and 23% complete as to conversion costs; units transferred out 10,500 units; and ending work in process 8,100 units that are 100% complete as to materials and 41% complete as to conversion costs. compute the equivalent units of production for (a) materials and (b) conversion costs for the month of november.

Answers: 3

continue

You know the right answer?

True or false: for high levels of quantity supplied where firms have reached near maximum capacity,...