Refer to Figure 2.4. The elasticity of demand at point a is given by:
A. the slope of line cd times (P1/Q1).
B. the slope of line ab times (Q1/P1).
C. the inverse of the slope of line cd times (P1/Q1).
D. the inverse of the slope of line ab times (Q1/P1).
C. the inverse of the slope of line cd times (P1/Q1).
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Which assumption(s) is (are) necessary for an efficient allocation of resources among firms?
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Indicate whether the statement is true or false