The market demand curve in a perfectly competitive industry is downward sloping, while the demand curve faced by an individual perfectly competitive firm is horizontal
a. True
b. False
Indicate whether the statement is true or false
True
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If the Fed's policy reaction function equals r = .02 + p, where r is the real interest rate, p is the inflation rate. If the real rate of interest is set at 5%, then the rate of inflation must be:
A. 4% B. 2%. C. 1%. D. 3%.
Suppose a firm's technology is represented by the function Q = F(L, K) = 5L0.25K0.75. Does this firm experience economies of scale, diseconomies of scale or neither?
What will be an ideal response?
Kiana’s country begins offering free college education to its citizens. This will most likely impact its production possibilities curve by ______.
a. causing it to spike b. shifting it outward c. shifting it inward d. causing it to trend downward
The short-run is a period of less than one year.
Answer the following statement true (T) or false (F)