In a perfectly competitive? industry, the industry demand curve
A. must be vertical.
B. is? upward-sloping.
C. is? downward-sloping.
D. must be horizontal.
Answer: C. is? downward-sloping.
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A firm finds that it must increase wages to attract extra workers. The firm will hire labor up to the point where the marginal
A. revenue product equals the additional cost of hiring an extra worker. B. revenue product of labor is greater than the wage rate. C. product of labor equals the wage rate. D. revenue product of labor starts to decline.
A war in the Middle East causes the price of oil to rise. What would we expect to happen to the demand for automobile tires?
A. The demand for automobile tires will shift left. B. The demand for automobile tires will shift right. C. The demand for automobile tires will stay the same. D. One cannot tell what will happen with the information given.
Figure 11.4Figure 11.4 depicts demand and costs for a monopolistically competitive firm. In the long run we expect:
A. more firms to enter the market. B. the firm's demand curve to shift to the left. C. the firm's average cost of production to increase. D. All of these
Explain why economics is considered a social science
What will be an ideal response?