If wheat can be produced at a constant opportunity cost, then the supply of wheat is
A) unit elastic.
B) inelastic.
C) perfectly inelastic.
D) perfectly elastic.
E) elastic.

Question

Quizplus · Accepted Answer

When a good can be produced at a constant opportunity cost, it means that the amount of resources needed to produce an additional unit of the good does not change. This scenario leads to a perfectly elastic supply, represented by a horizontal supply curve, indicating that producers are willing to supply any quantity of the good at a fixed price.

If Wheat Can Be Produced at a Constant Opportunity Cost