If the demand curve for each firm in Industry X is horizontal, then the demand curve for Industry X must also be horizontal.
Answer the following statement true (T) or false (F)
False
The market demand curve for a product is always downward-sloping (law of demand). The demand curve confronting a perfectly competitive firm is horizontal (perfectly elastic demand).
You might also like to view...
In comparing accounting profit with economic profit, we generally find that
A) accounting profit is less than economic profit. B) economic profit and accounting profit are the same in the short run. C) accounting profit is greater than or equal to economic profit. D) economic profit exceeds accounting profit by the amount of opportunity costs.
In U.S. v. U.S. Steel Corporation, the Supreme Court ruled that
a. U.S. Steel had violated the Sherman Act, particularly by organizing meetings with competitors such as the "Gary Dinners.". b. despite the fact that U.S. Steel controlled 50 percent of output in the steel industry, the company had not achieved monopoly power. c. large corporations, by definition, violate the Sherman Act. d. the Sherman Act did not apply to U.S. Steel because steel manufacturing was an activity "clothed with a public interest.".
The U.S. income tax system is progressive
a. True b. False Indicate whether the statement is true or false
The inflation rate in January 2009 as measured by the CPI was zero. If inflation were to remain at zero for a long period, what would be the effect on velocity?
A. Velocity will decrease. B. Velocity will increase. C. Velocity will remain constant. D. Velocity is unrelated to interest rates.