If a firm is a price taker, then the demand curve for the firm's product is
A. unit elastic.
B. equal to the total revenue curve.
C. perfectly inelastic.
D. perfectly elastic.
Answer: D
You might also like to view...
Refer to the scenario above. Suppose there are several other bidders in the auction. Roger will win the auction only if ________
A) all the other bidders bid above $625 B) all the other bidders bid below $625 C) all the other bidders are risk-lovers D) all the bidders are risk-averse
Firms in perfectly competitive markets who wish to maximize profits should produce where:
A. marginal revenue and average revenue are equal. B. marginal cost and average cost are equal. C. marginal revenue and marginal cost are equal. D. marginal revenue and market price are equal.
If the opportunity cost of manufacturing machinery is higher in the United States than in Britain and the opportunity cost of manufacturing sweaters is lower in the United States than in Britain, then the United States will:
A) export both sweaters and machinery to Britain. B) import both sweaters and machinery from Britain. C) export sweaters to Britain and import machinery from Britain. D) import sweaters from Britain and export machinery to Britain.
If a market changes from oligopoly to perfect competition, then as a result
A. Prices should rise in the long run. B. Profitability should rise in the long run. C. Fewer resources will be allocated to the market. D. Output should increase in the long run.