Why is the demand curve horizontal for a perfectly competitive firm?
What will be an ideal response?
The demand curve for a perfectly competitive firm is horizontal to reflect the fact that if it raises its price, its sales will drop to zero. The firm has no control over the market price.
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The political stability of countries has an impact on the foreign exchange market
Indicate whether the statement is true or false
Which of the following will not shift the market supply curve for corn?
a. a change in the price of corn b. a change in the price of soybeans c. a change in the price of herbicides and pesticides d. a change in storage technology e. a change in the number of acres planted in corn
For purposes of calculating GDP using the expenditure approach, which of the following payments is NOT included in the government spending component?
A. The wages paid by a state government to the workers in its welfare department
B. Social Security pensions
C. The wages paid by a local government to its road crew
D. The federal government's purchase of a submarine from a shipbuilder
A consumer increases their consumption from 2 to 4 units of a product.. As it does its total utility rises from 10 to 16 utils. The consumers marginal utility is:
a) 6 utils. b) 2 utils. c) 3 utils. d) 4 utils.