Because market price remains constant as a perfectly competitive firm expands output, each firm faces
a. a downward-sloping demand curve
b. a horizontal demand curve
c. constant returns to scale
d. constant costs
e. diminishing marginal revenue
B
You might also like to view...
China's exchange rate system from 1994 through 2005 is an example of
A) a flexible exchange rate system. B) a fixed exchange rate system. C) a managed float exchange rate system. D) the Bretton Woods System. E) a floating exchange rate system.
The term factor of production refers to
A. Any resource input used to produce goods and services. B. Only those goods that are produced and then used to produce other goods and services. C. Labor only. D. Factories and machinery only.
Plastics manufacturers can make either toys or plastic containers. If the prices and profitability of plastic toys increase, then the:
A. Demand for plastic containers will decrease B. Supply of plastic containers will increase C. Demand for plastic containers will increase D. Supply of plastic containers will decrease
The table above has real and nominal GDP for two years for a foreign country
a. What does the GDP price index equal in 2010? What does the value of the GDP price index tell you about 2010? b. What does the GDP price index equal in 2011?