The demand curve for the perfectly competitive industry normally slopes downward, unlike the perfect competitive firm. Why?
What will be an ideal response?
Each firm by itself is so small that if it alone were to double its output, the effect would hardly be noticeable. But if every firm in the industry were to expand its output, that would make a substantial difference. Customers can be induced to buy the additional quantities arriving at the market only if the price of the good falls.
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How does the national debt as a percentage of GDP in the United States compared to the United Kingdom?
a. U.S. national debt ratio is smaller. b. U.S. national debt ratio is slightly larger. c. U.S. national debt ratio is substantially larger. d. U.S. national debt ratio is substantially smaller.
Which of the following is true?
a. The FDIC sets the reserve requirements for commercial banks. b. The Federal Reserve System guarantees the deposits in almost all banks up to a $250,000 limit per account. c. Since the Federal Reserve System was established in 1913, bank failures due to panic withdrawals have been virtually eliminated. d. If a bank should fail, the FDIC guarantees that depositors can get their funds up to a $250,000 limit per account.
If we compare common and civil law, we find that:
a. Common law places more emphasis on private property rights b. Common law is less rigid c. Common law can adapt to new circumstances better d. a, b, and c are correct e. None of the above
Studying which of the following is helpful in learning to think like an economist?
a. theory b. case studies. c. examples of economics in the news. d. all of the above.