A firm facing a horizontal demand curve
A. cannot affect the price it receives for its output.
B. always produces at an output at which P = MR.
C. faces perfectly elastic demand for its product.
D. All of the responses are correct.
Answer: D
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In the United States, as measured by real GDP per person, average income is about how many times as high as average income a century ago?
a. 2 b. 4 c. 6 d. 8
Net public debt is equal to
A) the gross public debt minus current year tax revenue collection. B) the gross public debt minus taxes paid by foreign corporations on their profits made in the United States. C) the gross public debt plus all governmental interagency borrowing. D) the gross public debt minus all governmental interagency borrowing.
Compared with the U.S., developing countries
a. face geographic conditions that limit productivity. b. have universal health care that prevent the spread of diseases. c. more political stability. d. higher levels of educational attainment.
The bulk of the exports from developing countries comprises of:
a. manufactured goods. b. finished goods. c. raw materials. d. services.