Which of the following statements is NOT true for a perfectly competitive firm?
A) A firm's demand curve is horizontal.
B) The firm can influence its demand curve by advertising its product.
C) The firm's demand curve is perfectly elastic.
D) The market demand and supply curves determine the market price.
B
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If, at the current exchange rate between the dollar and the South African rand of 6.92 rand per dollar, the dollar is "undervalued," how do you expect demand and supply in the foreign exchange markets to respond?
A) The supply of the dollar will fall, while the demand for the rand will rise. B) The demand for the dollar will rise, while the supply of the rand will fall. C) The demand for the dollar will fall, while the supply of the rand will rise. D) The demand for the dollar will rise, while the supply of the rand will rise.
The output gap of zero indicates that
A) nominal GDP is equal to Real GDP. B) GDP is equal to GNP. C) the balance between unemployment and inflation has been reached. D) actual real GDP is equal to natural real GDP.
At a low wage rate,
a. there is no substitution effect b. there is no income effect c. the substitution effect usually outweighs the income effect d. the income effect usually outweighs the substitution effect e. the disutility of market work is usually high
The sub-discipline of economics that focuses especially on individual markets is:
a. normative economics. b. positive economics. c. microeconomics. d. macroeconomics. e. econometrics.