For a firm in a perfectly competitive industry
A. the demand curve is unitary elastic throughout.
B. the price elasticity of demand is zero.
C. marginal revenue and product price are equal at every level of output.
D. more output can be sold only if the firm unilaterally lowers its product price.
Answer: C
You might also like to view...
In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market sale ________ the ________ of reserves, causing the federal funds rate to increase, everything else held constant
A) increases; supply B) increases; demand C) decreases; supply D) decreases; demand
"Other things being equal, the monopolist hires fewer workers than would be hired than a perfectly competitive industry." Do you agree or disagree? Why?
What will be an ideal response?
If producers who hire labor in a competitive labor market decide to purchase the new automated machine that completes the work of 30 employees, in the short run we would expect the:
A. labor-supply curve to shift to the left and wages would rise. B. labor-demand curve to shift to the right and wages would increase. C. labor-supply curve to shift to the right and wages would rise. D. labor-demand curve to shift to the left and wages would decrease.
Government can be used to solve externality problems that are too costly for private parties to solve
a. True b. False Indicate whether the statement is true or false