If a single supplier produces such a small portion of the total market output that changes in its production have no impact on the overall market price: the firm will eventually be forced out of business. the firm's supply curve is perfectly inelastic. demand for the firm's output is perfectly elastic. the market supply curve is horizontal.

To determine the impact of the change in production by a supplier who supplies very small proportion…

Answered: If a single supplier produces such a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If a single supplier produces such a small portion of the total market output that changes in its production have no impact on the overall market price:

	the firm will eventually be forced out of business.
	the firm's supply curve is perfectly inelastic.
	demand for the firm's output is perfectly elastic.
	the market supply curve is horizontal.

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