The flatter a firm's marginal cost curve, the more sensitive the quantity produced is to changes in the firm's demand.

Name: The flatter a firm's marginal cost curve, the more sensitive the quantity produced is to changes in the firm's demand.
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Question

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A flatter marginal cost curve indicates that small changes in price lead to larger changes in quantity produced, showing higher sensitivity to demand changes.

The Flatter a Firm's Marginal Cost Curve, the More Sensitive