Economics (AS & A Level) · May / June 2023 · Paper 31 · Question 8
9708Growth and survival of firms
Steel producer X takes over its main competitor, steel producer Y. What would X expect to happen to the price elasticity of demand for its product and its long-run average cost as a result of this takeover?
- Adecrease; decrease
- Bdecrease; increase
- Cincrease; decrease
- Dincrease; increase
As printed in the paper
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Correct answer: A. decrease; decrease
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