Which of the following statements is correct about the demand curve of the perfectly competitive industry?
A) The demand curve of the perfectly competitive industry is horizontal as are the demand curves facing the individual firms.
B) The market demand curve of perfect competition is vertical because the individual consumers are buying a homogeneous product.
C) The market demand curve of the perfectly competitive industry is downward sloping while the demand curve facing an individual firm is horizontal.
D) The market demand curve of the perfectly competitive industry is downward sloping, so the demand curves of the individual firms are also downward sloping.
Answer: C
You might also like to view...
In the short run, which of the following would indicate that a perfectly competitive firm is producing an output for which it is receiving a normal profit?
A) P > AC B) AVC < P < AC C) P = AC D) P = AVC
About what percentage of U.S. exports in 2012 went to Canada?
A. 40% B. 30% C. 20% D. 15%
One of the main tools economists use to analyze strategic behavior is
A) the Herfindahl-Hirschman Index. B) game theory. C) cartel theory. D) the collusion index. E) dual theory, which is used to study duopolies.
If the dollar price of the English pound goes from $1.50 to $1.75, the dollar has
What will be an ideal response?