The perfect competitor has a perfectly elastic demand curve
A. only in the short run.
B. only in the long run.
C. in both the short run and the long run.
D. in neither the short run nor the long run.
C. in both the short run and the long run.
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The problem of getting an accurate reading on current economic developments is known as the
A) data problem. B) recognition lag. C) impact lag. D) information problem.
Explain why many economists are skeptical about whether Ricardian equivalence describes the behavior of households in the economy
What will be an ideal response?
The empirical specification TVC = aQ + bQ2 + cQ3 can be used to estimate
A. a ?-shaped TVC curve. B. short-run cubic cost function. C. a short-run cubic production function. D. both b and c E. none of the above
Suppose you operate in a monopolistically competitive market. If you sell your good at a price of $10 and your average cost of production is $8:
A. your market is in long-run equilibrium. B. we can expect firms to enter your market and sell a similar good in the long run. C. there will be no incentive for competing firms to enter your market in the long run. D. you cannot be in short-run equilibrium.