In perfect competition, what is the relationship between the demand for the firm's output and the market demand?
What will be an ideal response?
The market demand curve for the goods and services in a perfectly competitive market is downward sloping. However, no single firm in this market can influence the price at which it sells its output. This point means a firm that is a price taker must take the equilibrium market price as given, and the firm faces a perfectly elastic demand.
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When a person does not have to pay the full costs for using a scarce resource, then
A) the use of the resource is not affected since society pays for the resource. B) more of the resource will be used. C) the internal costs of using the resource are too high. D) the social costs of the resource are less than they would be if the "correct" amount of the resource were being used.
An example of an intermediate good would be a(n)
a. new car. b. used car. c. new tire for a used car. d. tire for a new car. e. All of the above.