Steel manufacturer X acquires its chief rival, steel manufacturer Y. What would X expect to happen to the price elasticity of demand for its product and to its long-run average cost because of this takeover?
- Aprice elasticity of demand decrease; long-run average cost decrease
- Bprice elasticity of demand decrease; long-run average cost increase
- Cprice elasticity of demand increase; long-run average cost decrease
- Dprice elasticity of demand increase; long-run average cost increase