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Assume That All Firms in This Industry Have Identical Cost

Question 6

Multiple Choice

Assume that all firms in this industry have identical cost functions. Assume that all firms in this industry have identical cost functions. The firm depicted in the graph on the right faces a demand curve that A) is horizontal at the market price. B) is downward sloping,and less than market demand curve. C) is the same as the marginal cost curve. D) is the same as the market demand curve.
The firm depicted in the graph on the right faces a demand curve that


A) is horizontal at the market price.
B) is downward sloping,and less than market demand curve.
C) is the same as the marginal cost curve.
D) is the same as the market demand curve.

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