A perfectly elastic demand function
A. is characteristic of an individual firm operating in a perfectly competitive market.
B. shows that the individual firm can increase sales by lowering the price of output.
C. has a marginal revenue that is always decreasing.
D. shows that a consumer is willing to pay any amount for the product.
Answer: A
You might also like to view...
A compensated demand curve contains no
a. income effects. b. substitution effects. c. price elasticity. d. income compensation.
In 2009, U.S. real GDP decreased by 3 percent and the population grew by 1 percent. Thus, real GDP per person
A) decreased 4 percent. B) increased 4 percent. C) decreased 3 percent. D) increased 2 percent. E) decreased 2 percent.
What is a subgame?
A) It is a simultaneous game embedded in a sequential game. B) It is one that starts at the final decision node of the tree. C) It is one that begins at any decision node of the tree except the first decision node. D) It is one that begins at any node of the tree, including the game itself.
Horizontal merger occurs when
A) two firms merge where one had sold its output to the other as an input. B) the merger moves the combined firm onto the horizontal portion of its long-run average cost curve. C) two firms merge where each is about the same size. D) two firms producing a similar product merge.