The demand schedule or curve confronted by the individual, purely competitive firm is:
A. relatively elastic, that is, the elasticity coefficient is greater than unity.
B. perfectly elastic.
C. relatively inelastic, that is, the elasticity coefficient is less than unity.
D. perfectly inelastic.
Answer: B
You might also like to view...
Lauren and Katy each bought a new bike lock for $20. Both Lauren and Katy would have paid $25 for the lock. Katy's consumer surplus equaled
A) $10. B) $40. C) $5. D) $20. E) $50.
What led to the over-extension of credit by some private banks and central banks in the euro zone prior to the 2009 euro crisis?
What will be an ideal response?
"As long as total revenue slopes up, marginal revenue must slope up also." Explain whether this statement is true or false
Jake is an excellent barber. However, all customers who come to him for a haircut must buy a bottle of shampoo. This type of arrangement is known as
A) a tie-in sale. B) a sweetheart deal. C) an exclusive contract. D) a cross subsidy.