Steel producer X acquires its chief rival, steel producer Y. As a result of this takeover, what would X anticipate will happen to the price elasticity of demand for its product and to its long-run average cost?
- 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