Under the perfectly competitive market structure, the demand curve of an individual firm is
A) perfectly inelastic.
B) downward sloping.
C) relatively inelastic.
D) perfectly elastic.
D
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An unusually warm winter shifts the
A) supply curve of gloves rightward. B) supply curve of gloves leftward. C) demand curve for gloves rightward. D) demand curve for gloves leftward.
An outward rotation of the production possibilities frontier occurs when
A) traders specialize in and exchange the products of their comparative advantage. B) one trader steals from the other. C) traders produce goods at exactly the same levels of opportunity cost. D) one trader begins to produce both goods at a higher level of opportunity cost compared to the other.
If the absolute value of the price elasticity of demand for a product is 1.5, and the price of a product increased 30 percent, then the quantity demanded will decline by
A) 45 percent. B) 20 percent. C) 5 percent. D) 10 percent.
Product differentiation refers to:
A. firms who offer similar products to their competitors' products, but that are more attractive in some way. B. the process of creating a standardized product with a lower-cost method than the competitors' method. C. the process of informing the public of differences in products as a result of error. D. consumers who sort and group goods based on similar characteristics.