Why can we represent the demand curve of a perfectly competitive firm as perfectly elastic (horizontal) at
Question:
Why can we represent the demand curve of a perfectly competitive firm as perfectly elastic (horizontal) at the market price?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (8 reviews)
If a perfectly competitive firm can sel...View the full answer
Answered By
Branice Buyengo Ajevi
I have been teaching for the last 5 years which has strengthened my interaction with students of different level.
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Why is the marginal revenue of a perfectly competitive firm equal to the market price?
-
A perfectly competitive firm will set MR = MC in order to maximize profit in the short run. 1. Graphically show a perfectly competitive firms profit maximizing price and quantity. 2. Explain whether...
-
A perfectly competitive firm has total revenue and total cost curves given by: TR = 100Q TC = 5,000 + 2Q + 0.2 Q2 a. Find the profit-maximizing output for this firm. b. What profit does the firm make?
-
In his senior year at Notre Dame, Chris Moore had been the third runner-up for the fabled Heisman Trophy. The trophy goes to the outstanding football player in America and is presented annually by...
-
If contracts are written on a 5,000-bushel basis requiring $3,000 of margin and you control 12 contracts, how much would the price per bushel have to change to generate enough profit to purchase an...
-
Maybe the number of total Rooms in the house is associated with the price of a house. Here is the scatterplot for the same homes we examined in Exercise 29: a) Is there an association? b) Check the...
-
Jennifer is a salesperson for a major chemical company doing business in China. To close a multimillion-dollar contract, she has been asked by a Chinese government official for a payment of...
-
(Matching) Hinckley Nuclear Power Plant will be mothballed at the end of its useful life (approximately 20 years) at great expense. The matching principle requires that expenses be matched to...
-
31 (i) Explain why the refractive index of any material with respect to air is always greater 1. (ii) In the figure below a light ray travels from air into the semi-circular plastic block. Give a...
-
Which of the following is true? a. Total revenue is price times the quantity sold. b. Average revenue is total revenue divided by the quantity sold. c. Marginal revenue is the change in total revenue...
-
How could differences in competition on routes lead to it being cheaper to fly from Los Angeles to Pittsburgh by booking a Los Angeles to New York flight with a stopover in Pittsburgh, than to book a...
-
In order to produce its new line of canned foods, Hammond Foods must purchase a specialized piece of equipment that has the capacity to fill a million cans annually. Suppose Hammond plans to...
-
The highest value of total cost was $80,000 in June for Acai Beverages, Inc. Its lowest value of total cost was $50,000 in December. The company makes a single product. The production volume in June...
-
When would an Army leader accept an extremely high risk?
-
When assessing a foreign country, market managers have to evaluate how feasible it is to target the market. What are marketing model drivers and enabling conditions? Briefly explain using the example.
-
Students will submit a complete Case Analysis for Tesla using the Course Template. This case can be found at the back of your text book. You are expected to submit a complete, detailed analysis using...
-
when problem solving, your suppliers sort activities by answering three questions. They include what was different this time; why here and not there? What is another question that a supplier might...
-
1. Exactly what preparation should Anna's company have given her before she started her assignment? 2. Many believe that women on international assignments prove to be very effective because they are...
-
AB CORPORATION ISSUED THE FOLLOWING 850 COMMON STOCKS PAR VALUE P100 750 PARTICIPATING PREFERRED STOCKS PAR VALUE P100 AT 3% AB CORPORATION DECLARED P100,000.00 DIVIDEND IN 2022.
-
Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next? How does the U.S. Bureau of Economic Analysis deal with this drawback?
-
Briefly explain whether you agree with the following statements. a. "If nominal GDP is less than real GDP, then the price level must have fallen during the year." b. "Whenever real GDP declines,...
-
An article in the Wall Street Journal discussed the views of Canadian Minister of Finance Joe Oliver on the effect of falling oil prices on the Canadian economy. According to the article, Oliver...
-
Find all the real zeros of the following polynomial. Do not enter a zero more than one time. Provide your answer below: f(x)=x-7x-8x2
-
Do you think the insolvency of Social Security can occur sooner as the result of the COVID-19 pandemic?
-
1. Let V=span (cos x, sin x)F (IR, IR) be the subspace of the real functions that contains linear combinations of sin x and cos x. Let T be the transformation that takes a function f=acosx+b sin x in...
Study smarter with the SolutionInn App