A vertical supply curve exhibits
A) a constant elasticity of supply.
B) a perfectly inelastic supply curve.
C) Both A and B are true.
D) None of the above.
C
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The labor force excludes those:
A. younger than age 16 years old. B. who are disabled and can't work. C. who don't want to work. D. The labor force excludes all of these.
Since the 1980s, Wal-Mart stores have appeared in almost every community in America. Wal-Mart buys their goods in large quantities and therefore at cheaper prices. Wal-Mart also locates its stores where land prices are low, usually outside of the community business district. Many customers shop at Wal-Mart because of low prices and free parking. Local retailers, like the neighborhood drug store, often go out of business because they lose customers. This story demonstrates that:
A. consumers are boycotting local retailers. B. Wal-Mart engages in illegal acts of monopolization. C. there are diseconomies of scale in retail sales. D. there are economies of scale in retail sales. E. Wal-Mart is managed by ruthless business people.
In a perfectly competitive industry, the industry demand curve
A. must be vertical. B. is upward sloping. C. must be horizontal. D. is downward sloping.
Differences in growth rates cannot explain why
A. some countries are wealthier than others. B. income inequality exists. C. the convergence hypothesis may hold. D. the productivity growth rates in China and Japan are converging.