8 In the long run, investment and depreciation will alter resource supply. Resource owners will shift factors

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8 In the long run, investment and depreciation will alter resource supply. Resource owners will shift factors of production toward areas in which resource prices have risen and away from areas where resource prices have fallen. Thus, the long-run supply will be more elastic than the short-run supply.

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Essentials Of Economics

ISBN: 396414

2nd Edition

Authors: James D Gwartney; Richard Stroup; J R Clark

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