A perfectly elastic demand curve implies that the firm: Multiple Choice must lower price to sell...

Question

Question

A perfectly elastic demand curve implies that the firm: Multiple Choice must lower price to sell more output can sell as much

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

A perfectly elastic demand curve is the curve in which change in price is constant for any number of output

It is horizontal line in the demand curve .

The demand can be l homogeneous as well as heterogeneous product .

So the only option true here is option B

Add a comment

Answer 2

Similar Homework Help Questions

A perfectly elastic demand curve implies that the firm: Multiple Choice must lower price to sell...

A perfectly elastic demand curve implies that the firm: Multiple Choice must lower price to sell more output can sell as much output as it chooses at the existing price. Oo oo realizes an increase in total revenue which is less than product price when it sells an extra unit is selling a differentiated (heterogeneous) product.
TU) UdlIT IS. In a perfectly competitive market: each firm produces a unique product and chooses a price that maximize...

TU) UdlIT IS. In a perfectly competitive market: each firm produces a unique product and chooses a price that maximize there are very few firms, and each controls a large segment of the market. entry into the industry is restricted in the long run. there are many relatively small firms, and each firm is a price-taker. c. t If a firm is a price-taker, it: sells its product at the price determined by the market. sells its product at the...
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is...

The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is perfectly vertical. maybe downward or upward sloping, depending upon the type of product offered for sale. In the short run, the best policy for a perfectly competitive firm is to Question 17 options: shut down its operation if the price ever falls below average total cost. produce and sell its product as long as price is greater than average variable cost. shut down its...

Which of the following is true for a monopolist? It faces a perfectly elastic demand curve....

Which of the following is true for a monopolist? It faces a perfectly elastic demand curve. It must lower its price in order to sell any additional units. Its marginal revenue curve is equal to its demand curve. It faces many competitors
The demand curve faced by the individual perfectly competitive firm is: a. perfectly elastic. b. perfectly...

The demand curve faced by the individual perfectly competitive firm is: a. perfectly elastic. b. perfectly inelastic. c. unit elastic. d. elastic or inelastic depending on price.
An individual price-taking firm faces a vertical, perfectly elastic demand curve for its output True False

An individual price-taking firm faces a vertical, perfectly elastic demand curve for its output True False

The perfectly competitive firm's demand curve is: Perfectly elastic. Relatively elastic Perfectly inelastic. Relatively inelastic Statement...

The perfectly competitive firm's demand curve is: Perfectly elastic. Relatively elastic Perfectly inelastic. Relatively inelastic Statement 1: In the long run, firms in a monopolistically competitive industry will be producing that quantity that maximize social surplus. Statement 2: In the long run, firms in a monopolistically competitive industry will be producing at the minimum of its ATC curve. Statement (1) is true; statement (2) is false. Statements (1) and (2) are both true. Statement (1) is false; statement (2) is...
In a duopoly, each firm faces: a more elastic demand curve if it lowers its price...

In a duopoly, each firm faces: a more elastic demand curve if it lowers its price a. b. a perfectly elastic demand curve a perfectly inelastic demand curved C. a more elastic demand curve if it raises its price d.
Elastic demand implies that a one percent increase in price results in a larger than one...

Elastic demand implies that a one percent increase in price results in a larger than one percent decrease in quantity demanded. that a one percent decrease or increase in price induces no change in total revenue. that a one percent increase in price results in a smaller than one percent decrease in quantity demanded. that a one percent cut in price results in a larger than one percent increase in quantity demanded. Question 4 (1 point) A perfectly elastic demand...

The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice...

The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice O is equal to its total variable costs. O O ь is zero. гето. O is equal to its total fixed costs. cannot be determined. Refer to the diagrams, which show the demand and cost curves for a perfectly competitive firm producing output and the demand and supply curve for the industry in which it operates. Which of the following is correct? ATC AVC...

A perfectly elastic demand curve implies that the firm: Multiple Choice must lower price to sell...

Homework Answers