Happy Cows and Free Cows are two separate perfectly competitive dairy farms. The table above shows the respective firms' marginal cost at various production levels.
-Refer to the table above. Relative to Free Cows, Happy Cows' marginal cost curve is_______ _, which makes its quantity produced_______ sensitive to changes in demand.

Question

Quizplus · Accepted Answer

A flatter marginal cost curve indicates that Happy Cows' production is more responsive to changes in demand, as smaller changes in price lead to larger changes in quantity produced.

Happy Cows and Free Cows Are Two Separate Perfectly Competitive