Question

Class Name Chapter 8 -Micro Indicate whether the statement is true or false. 1. The behaviour of an individual perfectly competitive firm has a definite influence o a. True b. False Tee e a. True b. False 6. The market demand curve in a perfectly competitive industry is downward sl individual perfectly competitive firm is horizontal a. True b. False 7. To maximize profits, a firm should produce the level of output at which to a. True b. False 13. The market demand curve in a perfectly competitive industry is horizo individual perfectly competitive firm is downward sloping. a. True b. False 16. A perfectly competitive market is characterized hy a small numher o

the demand curve faced by a perfectly competitive firm is horizontal

yes it a true or false question

Answer 1

2. The demand curve faced by perfectly competitive firm is horizontal. The individual firms are price taker. Thus, their demand curve is constant.

True.

6. The aggregate market demand curve of a perfectly competitive industry is downward sloping curve and individual demand curve is horizontal.

True.

7. A firm maximizes profit at that point where

Marginal Revenue = Marginal Cost (Monopoly)

In case of perfectly competitive firm the profit is maximized when Marginal Cost = Price.

13 industry demand curve is downward sloping

So, Question 13 is False.

Question 1 , 7 and 13 are not clear since statement is not clear.

Please contact before rating up will be obliged to you for your generous support. Thank you