Final answer:
The statement is True.
Step-by-step explanation:
The price elasticity of supply tends to be more inelastic as the firm's production facility reaches maximum capacity.
Price elasticity of supply measures the responsiveness of the quantity supplied to a change in price. When the supply is inelastic, it means that a change in price will result in a proportionately smaller change in quantity supplied. In other words, the supply is not very responsive to price changes.
As the firm's production facility reaches maximum capacity, it becomes more difficult for the firm to increase its output in response to a price increase. This makes the supply curve less responsive, leading to a more inelastic supply. Therefore, the price elasticity of supply tends to be more inelastic as the firm's production facility reaches maximum capacity.