In pure competition, the demand for the product of a single firm is perfectly:
A. elastic because many other firms produce the same product.
B. inelastic because the firm produces a unique product.
C. inelastic because many other firms produce the same product.
D. elastic because the firm produces a unique product.
Answer: A
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The sum of consumption and investment is: a. total production. b. aggregate supply
c. aggregate disposable demand. d. aggregate expenditures.
In an economy with flexible exchange rates, which measure(s) are successful at reducing unemployment in the context of the Three-Sector-Model?
a. Decrease government spending. b. Lower the discount rate for banks. c. Raise tax rates. d. Increase reserve requirements. e. All of the above
An example of a seller in a financial market would be:
A. families buying new cars B. individuals who have a savings account. C. entrepreneurs starting new ventures. D. the government when it needs to finance public spending.
Governments should provide nonrival, nonexcludable goods only if the social benefits of the goods outweigh the cost of producing those goods
Indicate whether the statement is true or false