Because perfectly competitive firms are price takers, each firm faces a demand that is
A) perfectly inelastic.
B) perfectly elastic.
C) highly inelastic but never is it perfectly inelastic.
D) unit elastic.
E) highly elastic but never is it perfectly elastic.
B
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For a typical firm, the portion of the AC curve that is downward-sloping is because production
A. exhibits decreasing returns to scale. B. creates innovative technological progress. C. economies of scale. D. exhibits rising total product.
Most lawyers, doctors, and accountants are in the
A. secondary labor market. B. primary labor market. C. minimum wage labor market. D. None of these choices are correct.
An example of a monopolistically competitive industry is grocery stores.
Answer the following statement true (T) or false (F)
Refer to the above figure. The figure represents the consumption function for a consumer. The distance between C and D represents
A. the amount of saving. B. the point where saving equals zero. C. the amount of autonomous consumption. D. the amount of dissaving.