Which of the following faces a horizontal demand curve?
a. A monopolistic firm
b. An oligopolistic firm
c. A perfectly competitive firm
d. A monopolistically competitive firm
e. A monopsonist firm
c
You might also like to view...
Use the following graph to answer the next question.
Suppose the economy is in equilibrium at point C. A personal income tax cut would most likely
A. move the economy upward from point C along AD1. B. cause the AS curve to shift to the right. C. move the economy downward from point C along AD1. D. move the economy from point C toward point B.
The cost of a one-unit increase in an activity is called the
A) rational cost. B) opportunity benefit. C) marginal cost. D) marginal benefit. E) margin.
The above figure shows the demand curve for movie rentals from Redbox. If Redbox raised its price from $2.50 to $3.00, between these two prices the price elasticity of demand equals
A) 1.2. B) 0.8. C) 2.0. D) 0.5.
Refer to Figure 9.5. The firm is producing Q units. Which area represents producer surplus?
A. ABCDE
B. EDGF
C. EDCHF
D. ABHF