The demand curve facing a perfectly competitive firm is
A) the same as the market demand curve.
B) downward-sloping and less flat than the market demand curve.
C) downward-sloping and more flat than the market demand curve.
D) perfectly horizontal.
E) perfectly vertical.
D
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The process by which economists test hypotheses against facts to develop theories, principles, and models is called
A. the economic perspective. B. the scientific method. C. policy economics. D. microeconomics.
Discretionary expansionary fiscal policy may not lead to _____
a. decreased national saving b. decreased unemployment c. inflation d. lower interest rates e. crowding out
Suppose that a more efficient way to produce a good is discovered, thus lowering production costs for the good. This will cause a(n):
A. Increase in supply B. Decrease in supply C. Increase in quantity supplied D. Decrease in quantity supplied
Marginal cost is equal to average variable cost
A) when average variable cost is at its minimum value. B) when marginal cost is at its minimum value. C) when average variable cost is getting smaller. D) when average variable cost is getting larger.