In a perfectly competitive industry, the firm's demand curve is
What will be an ideal response?
horizontal.
The firm's demand curve is perfectly elastic because each firm sells at the price determined in the market
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Measures of concentration
A) refer to the concentration of customers in a certain area. B) measure whether the market is dominated by a small number of firms. C) measure the concentration of a large number of firms in a certain area. D) have high values for perfect competition. E) measure how concentrated a firm's sales are among certain types of goods.
Given the information in the table above, Home's opportunity cost of cloth is
A) 0.5. B) 2.0. C) 6.0. D) 1.5. E) 3.0.
If a change in the price of one good does not cause a shift in the demand curve of another good, then the two goods are:
A. substitutes. B. complements. C. normal. D. not related.
Which factor listed below does NOT help account for the age-earning cycle?
A. racial discrimination B. number of hours worked each week C. effects of aging D. productivity