The market demand curve in perfect competition is found by
A. the interaction of supply and demand at the individual firm and consumer levels.
B. horizontally summing the demand curves of the individual consumers.
C. horizontally summing the supply curves of the individual firms in the industry.
D. utility maximizing behavior of the "representative consumer."
Answer: B
You might also like to view...
The above table gives the initial balance sheet for Mini Bank. If the bank's desired reserve ratio is 10 percent, how much does this bank have in excess reserves?
A) $60 B) $90 C) $40 D) $10
Which of the following statements is true concerning DRGs?
a. Soon after their implementation in 1983, the average length of stay in U.S. hospitals fell significantly. b. Hospital operating margins fell dramatically immediately after implementation of the program. c. The system encourages over-treatment of elderly patients. d. The system encourages physicians to over-diagnose. e. Both a and d are true.
The Great Recession ended in June 2009 but the peak in unemployment occurred in _____________.
A. August 2009 B. October 2009 C. January 2010 D. March 2010
Refer to Figure 3.2, which shows David's and Celeste's individual supply curves for flower arrangements per week. Assuming David and Celeste are the only producers in the market, if the market quantity supplied is 350, the price must be:
A. $10. B. $20. C. $30. D. $40.