PLease choose ( True or Flase or uncertain((( the teacher wants answer with vali

Question

PLease choose ( True or Flase or uncertain((( the teacher wants answer with valid reasoning. please explain in details for each. Thanks

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.               

Explanation / Answer

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.

false

A horizontal demand curve is perfectly elastic. If there are n identical firms in the market then the elasticity of demand PED facing any one firm is

where PEDm is the market elasticity of demand, PES is the elasticity of supply of each of the other firms, and (n -1) is the number of other firms.

This formula suggests two things. The demand curve is not perfectly elastic and if there are a large number of firms in the industry the elasticity of demand for any individual firm will be extremely high and the demand curve facing the firm will be nearly flat

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