The market demand curve in perfect competition is found by
A) horizontally summing the supply curves of the individual firms in the industry.
B) horizontally summing the demand curves of the individual consumers.
C) utility maximizing behavior of the "representative consumer."
D) the interaction of supply and demand at the individual firm and consumer levels.
B
You might also like to view...
If Slovenia is a large country in world trade, then if it imposes a large set of tariffs on many of its imports, this would
A) improve its terms of trade. B) have no effect on its terms of trade. C) harm its terms of trade. D) decrease its marginal propensity to consume. E) increase its exports.
How much is the tax?
A. $1.35 B. $1.65 C. $2.00 D. $4.00
Use the above table. At an income of $50
A. real dissaving is $50. B. real saving is $10. C. real saving is $20. D. real dissaving is $10.
Explain the difference between positive economics and normative economics
What will be an ideal response?