Explain the price elasticity of the aggregate industry

Reference no: EM13182922

1) A profit maximizing entreprenuer will minimize costs for a given output rather than maximizing output for a given cost.

2)A firm in a competitive industry has marginal revenue which depends on the shape of the consumers' demand curve.
3) In a competitive industry, the price elasticity of the aggregate industry supply curve will always be greater than or equal to the price elasticity of the supply of any individual firm.

Reference no: EM13182922

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