Because a competitive firm is a price taker, it faces a demand curve that is:
a. perfectly inelastic.
b. relatively inelastic.
c. relatively elastic.
d. perfectly elastic.
d
You might also like to view...
Most economists believe that only a small gap between the wages of white males and the wages of other groups is due to education. Most of the gap is explained by discrimination
Indicate whether the statement is true or false
Adoption of a currency board
A) is one method for achieving a soft peg policy. B) places responsibility for exchange rate management in the hands of an agency that is independent of political influences. C) mandates the use of currency in all domestic transactions. D) requires that a centralized institution holds interest-bearing assets denominated in the currency against which the nominal exchange rate is being fixed.
Cynthia sells walnut cookies in a perfectly competitive market where the market price is $10 per cookie. Cynthia produces 500 cookies per month with a marginal cost of $5 per cookie, an average variable cost of $3 per cookie, and an average total cost of $7 per cookie. Cynthia is likely to: a. increase the production of cookies to maximize profit
b. decrease the production of cookies but stay open. c. continue to maintain current production levels to minimize her losses. d. shut down immediately to minimize her losses.
Adjusting labor force participation rates for the age of the population suggests that
A. the raw number overstates the increase in the rate among women. B. the raw number understates the increase in the rate among women. C. the raw number correctly states the decrease in the rate among women. D. the labor force participation rate among women is higher than that of men.