Question 5 (1 point)

Statement 1: "If a firm is a perfect competitor, then its marginal revenue is larger than the price of its commodity." Statement 2: "The long-run price elasticity of demand for a commodity is generally more elastic than the short-run price elasticity of demand for the commodity."

Question 5 options:

a)	Statement 1 is False. Statement 2 is False.

b)	Statement 1 is True. Statement 2 is True.

c)	Statement 1 is True. Statement 2 is False.

d)	Statement 1 is False. Statement 2 is True.