Which of the following statements is correct about the demand curve of the perfectly competitive industry?
A. The market demand curve of the perfectly competitive industry is downward sloping while the demand curve facing an individual firm is horizontal.
B. The demand curve of the perfectly competitive industry is horizontal as are the demand curves facing the individual firms.
C. The market demand curve of perfect competition is vertical because the individual consumers are buying a homogeneous product.
D. The market demand curve of the perfectly competitive industry is downward sloping, so the demand curves of the individual firms are also downward sloping.
Answer: A
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Explain how the government gains revenue during inflation
What will be an ideal response?
The classical theory of inflation:
A. describes a long-run equilibrium. B. explains the direct relationship between money supply and the price level. C. shows neutrality of money in the long run. D. All of these statements are true.
The federal government's lawsuit against AT&T was motivated in large part by
A. Its practice of price discrimination. B. AT&T's inefficient and inadequate R&D expenditures. C. The diseconomies of scale resulting from AT&T's enormous size. D. The extension of its market power to other markets.
Aimee sells hand-embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $42,000, and the opportunity costs of her business are $30,000. What is her accounting profit?
A) $12,000 B) $56,000 C) $86,000 D) $98,000