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If a Single Supplier Produces a Good with Many Good

Question 3

Multiple Choice

If a single supplier produces a good with many good substitutes, then:


A) it will have little control over the market price.
B) the demand curve for its output will be downward sloping.
C) the price it chooses to set must be less than the market price in order to sell additional output.
D) the market demand will be perfectly elastic.

Correct Answer:

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