In a market with perfectly competitive firms, the market demand curve is usually ____ and the demand curve facing each individual firm ____.
A. upward sloping; horizontal
B. downward sloping; horizontal
C. horizontal; downward sloping
D. downward sloping; downward sloping
Answer: B
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Consider an economy where the growth rate of real GDP is 6% and the annual rate of inflation is 2%. If the quantity theory of money holds, the growth rate of money supply in the economy will be:
A) 6%. B) 2%. C) 8%. D) 4%.
In the figure above, what is the efficient quantity of pesticide to produce?
A) 300 tons per month B) 240 tons per month C) 180 tons per month D) 360 tons per month
Marginal revenue is defined as
a. total revenue divided by quantity b. total revenue minus total cost c. the change in total revenue divided by the change in quantity d. the change in total revenue divided by quantity e. the change in total revenue
A shortage exists in a market if a. there is an excess supply of the good
b. quantity supplied exceeds quantity demanded. c. the current price is below its equilibrium price. d. All of the above are correct.