Please answer (true, false or Uncertain and support your answer with explainatio

Question

Please answer (true, false or Uncertain and support your answer with explaination.

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

1) False. Profit maximizer will focus on maximizing output and thereby increasing revenue and profit both for a given cost.

2)True. Consumers demand curve decides the marinal revenue for firm in perfect competion.

3)False. In perfect competiton these will be equal.

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