- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 4. Breakeven Analysis and Shutdown Decision
CFA Practice Question
In the short run, ______
B. supply is relatively inelastic.
C. the elasticity of supply is unrelated to time.
A. supply is relatively elastic.
B. supply is relatively inelastic.
C. the elasticity of supply is unrelated to time.
Correct Answer: B
In the short run, producers face restrictions on their ability to alter output and supply is less elastic.
User Contributed Comments 4
| User | Comment |
|---|---|
| isida | this is different from supply of mobile resources such as labor or land...here we are just talking about the supply of merchandise for example |
| kalps | no it is supply of everything - for example you cannot get an extra person to work for you on the same day it takes time forexample training and recruiting |
| magicchip | adjusting inputs takes time. therefore, supply inelastic over short time frames. |
| choas69 | small time gap to adapt and adjust. |