Micro Economic - Consider the competitive model of a firm
Question # 00761308
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Updated on: 05/14/2020 06:58 AM Due on: 05/14/2020
Micro Economic Question
Consider the competitive model of a firm where each firm has an identical linear supply curve (optimal supply rule). As the number of firms in the industry increases, the linear market supply curve could have a constant elasticity equal to 1 regardless of the (finite) number of firms. Is this a true statement?
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Solution: Micro Economic - Consider the competitive model of a firm