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A Perfectly Elastic Demand Curve Implies That the Firm

Question 144

Multiple Choice

A perfectly elastic demand curve implies that the firm


A) must lower price to sell more output.
B) can sell as much output as it chooses at the existing price.
C) realizes an increase in total revenue that is less than product price when it sells an extra unit.
D) is selling a differentiated (heterogeneous) product.

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