The result that perfectly competitive firms produce at the lowest per-unit cost is derived from the assumptions of
a. homogeneous products.
b. few sellers.
c. firms facing horizontal demand curves.
d. free entry and exit.
d
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When deciding whether to engage in an activity or how much to do, people should follow
A) the principle of microeconomics. B) the marginal principle. C) the principle of macroeconomics. D) the law of supply and demand.
If marginal profit is zero, then average profit is at a maximum.
Answer the following statement true (T) or false (F)
Movement along the aggregate demand curve may be caused by a change in autonomous investment spending
a. True b. False Indicate whether the statement is true or false
At a price of $20, Daphne sells 35 hand-painted dog collars per week. When she raised her price to $25, she sold 28 per week. Based on this information, the demand for her dog collars is
A) perfectly elastic. B) inelastic. C) unit elastic. D) elastic.