The supply curve for manufactured goods is usually more elastic because production can often be:
A) increased at higher cost per unit by building more factories.
B) increased at lower cost per unit by building more factories.
C) decreased at the same cost per unit by building more factories.
D) increased at the same cost per unit by building more factories.

Question

Quizplus · Accepted Answer

Manufacturing goods can often be produced at the same cost per unit by building more factories, known as economies of scale. This allows for a more elastic supply curve as increasing production does not lead to a significant increase in cost. Therefore, choice D is the best answer.

The Supply Curve for Manufactured Goods Is Usually More Elastic