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Leviafan [203]
3 years ago
6

Using the graph, complete the table that follows by indicating whether each statement is true or false. Statement True False Bet

ween points A and C, curve MM is inelastic. Curve MM is less elastic between points A and C than curve NN is between points A and D. Between points A and B, curve LL is perfectly inelastic.
a. True.
b. False.

Business
1 answer:
stepladder [879]3 years ago
7 0

The answer & explanation for this question is given in the attachment below.

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Explanation:

If a purely competitive firm is currently facing a situation where the price of its product is lower than the average variable cost, but it believes that the market demand for its product will increase soon, then the firm will shut down in the short run, but stay in the industry in the long run if it expects the product price to rise high enough soon.

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