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If the Long-Run Market Supply Curve Is Perfectly Elastic, a Decrease

Question 41

Multiple Choice

If the long-run market supply curve is perfectly elastic, a decrease in variable cost will:


A) shift the supply curve upward to a higher market-clearing price level.
B) shift the supply curve downward to a lower market-clearing price level.
C) shift the supply curve to the right to a higher market-clearing output.
D) shift the supply curve to the left to a lower market-clearing output.

Correct Answer:

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