PRC-3 · Chapter 11 · Question 50 of 57
In a timeframe defined as the 'Very Short Run', producers cannot alter their output at all because all factors of production are fixed. Consequently, the supply curve is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Perfectly inelastic (vertical)
Explanation
In the very short run (immediate market period), output is completely restricted to existing stock, rendering supply perfectly inelastic regardless of demand or price spikes.
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