A perfectly competitive firm faces a demand curve that is
A) perpendicular to the quantity axis. B) horizontal.
C) vertical. D) perfectly inelastic.
B
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Which of the following statements is false? An economic analysis of carbon taxes can:
A) calculate the increase in costs faced by coal-using industries. B) predict the effect on unemployment in West Virginia coal mining communities. C) compare the likely reductions in medical expenditures on diseases caused by smog. D) present a trade-off of the costs and benefits of different levels of carbon taxes. E) conclude that such taxes should be imposed to benefit future generations.
A perfectly inelastic demand curve indicates that
a. a producer can sell as many units as desired at the market price but no units above the market price. b. for a given percent change in price, the quantity demanded rises by the same percentage. c. price has no effect on the quantity demanded. d. the percent change in price is less than the percent change in quantity demanded.
Even with market power, monopolists cannot achieve any level of profit they desire because they will sell lower quantities at higher prices
a. True b. False Indicate whether the statement is true or false