Business, 01.07.2019 19:40 saucyboyFredo

True or false: for high levels of quantity supplied where firms have reached near maximum capacity, supply becomes more elastic because firms may need to invest in additional capital in order to further increase production.

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False Once firm has reached maximum production capacity, firm will need to make additional investment to expand production plants and to achieve this , firm will need to increase the prices of the product which will affect the supply elasticity.

Answer from: dakotaadkins1818

The given statement is true. The high level of supply will lead to additional capital for the further production of the goods.

Further Explanation:

Elasticity of supply:

The elasticity of supply refers to the measurement of the change in quantity supplied due to the change in the price of the goods. It is also known as the price elasticity of supply. The increase in the demand for a product will increase the price and supply. Therefore, the speed of increase in the supply is known as the elasticity of supply.

Effect of the high level of quantity supplied:

The high level of the quantity provided can be the result of the high level of demand for the product. The increase in the demand for the product will increase the supply and price of the goods. It will result in the elastic supply. The increase in the supply will enforce the manufacturer to engage additional resources to produce goods for the demand of the goods.

Thus, the given statement is true. The high level of supply will lead to additional capital for the further production of the goods.

Learn More:

1. Learn more about the types of market

2. Learn more about the product leadership

3. Learn more about the demand and supply

Answer Details:

Grade: Middle school

Chapter: Elasticity of supply

Subject: Economics

Keywords: True or false, high, levels, quantity, supplied, firms, reached, maximum, capacity, supply, becomes, elastic, firms, invest, additional, capital, order, further, increase, production.

Answer from: yoyo1542

The statement that for high levels of quantity supplied where firms have reached near maximum capacity, supply becomes more elastic is True.

This is because firms may need to invest in additional capital in order to further increase production.

What is production?

Production can be regarded as the process of utilization of material inputs as well aa immaterial input for consumption.

Learn more about production at

Answer from: Quest

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Answer from: Quest

The answer is b hope i

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