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Answer to Question #86098 in Microeconomics for prashant
Question #86098
assuming monopoly in the commodity market and perfect competition in the factor market derive the demand curve for a variable factor when there are several variable factors.
Expert's answer
Assuming monopoly in the commodity market and perfect competition in the factor market the demand curve for a variable factor is perfectly elastic and is a horizontal line for the factor market and is downward-sloping for the commodity market, if there are several variable factors.
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