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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