A firm have fully utilized the available resources and Technology. In this case what is the elasticity of supply? Is it comparatively elastic or inelastic?
In this scenario, if a firm has fully utilized the available resources and technology, it implies that they have reached their maximum production capacity. The elasticity of supply in such a situation would be considered relatively inelastic.
Elasticity of supply refers to the responsiveness of quantity supplied to a change in price. When a firm has fully utilized its resources and technology, it means it cannot easily increase its production even if there is an increase in demand or price. This lack of flexibility in increasing output makes the supply relatively inelastic.
In summary, when a firm has fully utilized available resources and technology, the elasticity of supply is relatively inelastic.