The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1

-The supply of hydro electric power:

Question

The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1
 
-The supply of hydro electric power:

Quizplus · Accepted Answer

In the long run, the supply of hydroelectric power can increase with an increase in price as higher prices can justify the investment in new infrastructure and technology to harness more power.

The Figure Given Below Represents an Imperfectly Competitive Resource Market