The demand curve facing a perfectly competitive firm is
a. almost vertical at the market quantity
b. perfectly inelastic
c. perfectly elastic
d. horizontal at the price the firm wishes to charge
e. downward sloping
C
You might also like to view...
Suppose a tax equal to the value of the external cost of producing car batteries is imposed by government on all car battery manufacturers. All of the following will result from the tax except
A) an increase in demand for car batteries. B) a decrease in the market supply of car batteries. C) an increase in the equilibrium price of car batteries. D) a decrease in the equilibrium quantity of car batteries produced and consumed.
When firms participate in group health insurance for all employees, it
A) raises rates for everyone, because it brings unhealthy people into the pool. B) raises rates for unhealthy people. C) may lower rates for all people to the extent that it keeps healthy people in the pool. D) prevents unhealthy people from "selecting out," to the detriment of healthy people. E) increases the amount of information available to insurers about the population.
If a government pursues the industrial policy of import substitution, it is:
A. protecting domestic industries until they are efficient enough to compete in the world market. B. giving consumers incentive to substitute imported goods for those domestically produced. C. encouraging domestic industries to ship imports to other countries. D. mandating that imports can only be sold if the domestic economy does not produce that particular good.
What are automatic stabilizers?
a. Laws setting up responses to changes in the economy that Congress does not have to discuss and pass when the change occurs. b. Laws setting up responses to changes in the economy that Congress will discuss and vote on when the change occurs. c. Actions Congress takes when it has determined that laws should be passed to stimulate the economy. d. Actions Congress takes when it has determined that laws should be passed to contract the economy.