If there is no product differentiation at? all, then the individual firm has a demand curve that is
a. perfectly inelastic and identical to the firm in perfect competition.
b. slightly downward sloping and identical the firm in monopolistic competition.
c. perfectly elastic and identical to the firm in perfect competition.
d. unit elastic and identical to the firm in perfect competition.
Answer: c. perfectly elastic and identical to the firm in perfect competition.
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Suppose that the local hospital claims that the wages of nurses are too high. Yet, the hospital has 10 nursing positions open and no applicants for the jobs. Is the hospital's claim legitimate? Why or why not?
What will be an ideal response?
If the growth rate of real GDP rises from 3% to 4% per year, then the number of years required to double real GDP will decrease from
A) 11.2 years to 10.8 years. B) 23.3 years to 17.5 years. C) 28.0 years to 21.0 years. D) 23.3 years to 20.6 years. Table 21-1 Year Real GDP (billions of 2000 dollars) 2013 $8,700 2014 8,875 2015 9,000 2016 9,280
Keynes once remarked that, in the long run, we're all dead. He was responding to the conventional wisdom of classical economics who argued that:
a. the supply curve should remain vertical in the long run. b. World War I was fought to free Britain from economic ruin. c. depression was only a short-run, temporary departure from full-employment equilibrium. d. funeral plots need to be determined by the market. e. market-based realities cause the estate tax to be too high.
[Appendix material: calculus required] Given the benefit function B(Y) = 400Y ? 2Y2, the marginal benefit is:
A. 400 ? 2Y2. B. 800 ? 2Y. C. 400 ? 4Y. D. 200Y.