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A business manager finds that the majority of expenses each month are completely uncorrelated with revenue levels. How might the nature of these expenses influence
A business manager finds that the majority of expenses each month are completely uncorrelated with revenue levels. How might the nature of these expenses influence the market equilibrium point? An efficient firm can easily cut costs to raise profit levels, leading to more supply The market equilibrium point will be higher as firms seek to increase marginal revenue Marginal costs can quickly equal marginal revenue if inefficiency exists Consumers will not be satisfied at high price points
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