Economics (AS & A Level) · Feb / March 2024 · Paper 32 · Question 5
9708Growth and survival of firms
Two firms selling the same type of product find it more efficient to merge. Which combination describes how the merged firm's average costs of production and demand curve are expected to change?
- Afall | more elastic
- Bfall | more inelastic
- Crise | more elastic
- Drise | more inelastic
As printed in the paper
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Correct answer: B. fall | more inelastic
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