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2. True, false, or uncertain? Explain briefly but specifically. a. A perfectly competitive firm chooses q by setting MR = MC. b. Supply becomes less
2. True, false, or uncertain? Explain briefly but specifically. a. A perfectly competitive firm chooses q by setting MR = MC. b. Supply becomes less elastic as the number of firms increases. c. The long run expansion path indicates the optimal combination of capital and labor for any level of output. d. A cost function exhibits diseconomies of scale if the marginal cost rises as output decreases
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