A perfectly competitive firm faces a horizontal demand curve because it is
A) a price taker.
B) a price maker.
C) a large firm in a small industry.
D) one of few firms in the market.
Answer: A
Economics
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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for mustard and that bratwurst and mustard are complements. What panel describes what happens in this market when the price of bratwurst falls?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
Economics
The following table shows Jay's estimated annual benefits of holding different amounts of money.Average money holdingsTotal benefit$100$20$200$29$300$36$400$41$500$44 How much money will Jay hold if the nominal interest rate is 6 percent? (Assume he wants his money holdings to be in multiples of $100.)
A. $300 B. $100 C. $200 D. $400
Economics