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15/19 A firm facing a horizontal demand curve: can increase its output as much as it wants at a given price. can affect the p
16/19 A profit-maximizing, perfectly competitive firm would never operate at an output level where. it would not cover all of
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Answer #1

1) Solution: can increase its output as much as it wants at a given price.

Explanation: A firm facing a horizontal demand curve indicates a perfectly elastic demand for it's good thus can raise the output as much as it wants at a given price

2) Solution: it would not cover all of its variable costs

Explanation: When profit-maximizing perfectly competitive fails to cover all of its variable costs it will not be operating

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