A perfectly competitive firm faces a demand curve that is
A) horizontal.
B) vertical.
C) perpendicular to the quantity axis.
D) perfectly inelastic.
Answer: A
You might also like to view...
Which of the following serves as money in many federal prisons in the United States these days?
a. Postage stamps b. Energy bars c. Plastic-and-foil pouches of mackerel d. Cans of tuna e. Cigarettes
If an economy's population grows at 3 percent and GDP grows at 4 percent, then:
a. per capita real GDP is declining. b. the economy's standard of living is decreasing. c. per capita real GDP is negative. d. per capita real GDP is growing. e. the economy is experiencing unemployment.
Elected officials never care about the wishes of the voting public and govern using their own value system.
A. True B. False C. Uncertain
Exhibit 8-11 A firm's cost and marginal revenue curves
In Exhibit 8-11, when the price is $5, the firm:
A. is making an economic profit of $21. B. should produce output equal to 10. C. is breaking even. D. should produce output equal to 7.