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Consider a competitive market for nails whose market demand takes a generic downward and linear shape. Nail producers have a constant average cost (and thus

Consider a competitive market for nails whose market demand takes a generic downward and linear shape. Nail producers have a constant average cost (and thus a constant marginal cost as well) and all of their fixed cost are sunk, which implies that the market supply of nails is perfectly price-elastic. Is the statement below is true or false? Please answer by providing a brief explanation. (It's not required, but sketching a graph would be helpful.

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