How would you describe the demand curve for the purely competitive firm? For the industry?
What will be an ideal response?
The demand curve for the individual competitive firm is perfectly elastic. The firm can sell all the output it can produce at the competitive market price because each firm accounts for only a negligible share of the market. There is no reason for the firm to lower price to sell more, nor can the firm obtain a higher price by restricting output. The market or industry demand curve, however, is down sloping. Consumers will only purchase greater output for the entire industry at a lower price, but less output can be sold to consumers at a higher price.
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Deficits and surpluses are commonly calculated as:
A. debt per taxpayer. B. average debt per state. C. a percentage of national GDP. D. absolute values.
Non-renewable resources are those that
a. are not renewed by nature, but their supply can be easily expanded by humans. b. are naturally renewed by nature; timber provides an example. c. are not renewed by nature at a significant rate. d. cannot be recycled, by their very nature.
Taxes affect market participants by increasing the price paid by the buyer and received by the seller
a. True b. False Indicate whether the statement is true or false
In the simple Keynesian portion of the short-run aggregate supply curve
A. equilibrium real GDP is supply-determined. B. equilibrium real GDP is neither determined by aggregate supply nor by aggregate demand. C. equilibrium real GDP is demand-determined. D. equilibrium real GDP is determined by both aggregate supply and aggregate demand.