1.1 A competitive firm faces a relatively horizontal residual demand curve. Do the following conditions make the...

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1.1 A competitive firm faces a relatively horizontal residual demand curve. Do the following conditions make the demand curve flatter (and why)?

a. Ease of entry.

b. A large number of firms in the market.

c. The market demand curve is relatively elastic at the equilibrium.

d. The supply curves of other firms are relatively elastic.

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Microeconomics

ISBN: 9780133456912

7th Edition

Authors: Jeffrey M. Perloff

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