Because market price remains constant as a perfectly competitive firm expands output, each firm faces

a. a downward-sloping demand curve
b. a horizontal demand curve
c. constant returns to scale
d. constant costs
e. diminishing marginal revenue

B

Economics

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Which of the following shifts the aggregate supply curve rightward? i. The money wage rate rises. ii. Potential GDP increases. iii. Government expenditure on goods and services increases

A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii

Economics

A normal good is a good for which the demanded decreases as income decreases, holding everything else constant

Indicate whether the statement is true or false

Economics