Question

A glass company making windows for houses also makes windows for other things (cars, boats, planes, etc.). We would expect its supply curve for house windows to be: And if you can explain why please otherwise I won't rate your answer.

a.) No different than that of firms which only make those windows
b.) Dependent on the demand for boat and plane windows
c.) Relatively more elastic than those of firms which only make house windows
d.) Relatively more inelastic than those of firms which only make house windows

Answer 1

Answer:

C) Relatively more elastic than those of firms which only make house windows

Explanation:

The supply curve for this company will be more elastic than the supply curves of its competition because it can decide to produce either house windows or other types of windows depending on which product generates the largest profit. For example, if the price of car windows increases, then the company's supply of car windows will increase.