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When Comparing a Growth- Maximising Firm with a Short- Run

Question 10

Multiple Choice

When comparing a growth- maximising firm with a short- run profit- maximising firm, which one of the following (in the short run) is likely for the growth- maximising firm?


A) A lower price relative to average cost
B) A lower level of advertising
C) A lower level of investment
D) A higher price elasticity of demand at the price charged by the firm
E) A lower equilibrium output

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