A perfectly competitive firm with a random demand has a ________ demand curve and ________ marginal revenue curve.

A) horizontal; horizontal
B) vertical; horizontal
C) vertical; vertical
D) horizontal; vertical


A) horizontal; horizontal

Economics

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Figure 9.1 shows three aggregate demand curves. A movement from curve AD1 to curve AD2 could be caused by a(n)

A) increase in the money supply. B) decrease in government spending. C) increase in taxes. D) increase in the price level.

Economics

Suppose that, last year, the price of peanuts fell and the quantity sold increased. Use supply and demand analysis to explain how these changes could have occurred

What will be an ideal response?

Economics

Which of the following economic forces promotes profitability in the long run?

A. A large number of complementary products B. Existence of strong barriers to entry. C. A large number of close substitute products. D. Both a and b E. All of the above

Economics

An example of an intermediate good or service would be:

A. sacks of groceries bought by a dentist for his family. B. a car bought by a stockbroker for commuting to work. C. a desk bought by an accountant for her office. D. bricks bought by a homeowner for constructing a patio.

Economics