Which of the following statements is correct?
A. The demand curve for a purely competitive firm is perfectly elastic, but the demand curve
for a purely competitive industry is downsloping.
B. The demand curve for a purely competitive firm is downsloping, but the demand curve for a
purely competitive industry is perfectly elastic.
C. The demand curves are downsloping for both a purely competitive firm and a purely
competitive industry.
D. The demand curves are perfectly elastic for both a purely competitive firm and a purely
competitive industry.
Answer: A
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A homeowner wants to purchase the property on both sides of his house so he can expand the size of his home and increase property values throughout his neighborhood. In this case,
A) eminent domain would likely be used to reduce transactions costs. B) eminent domain would likely be used to reduce the holdout problem. C) eminent domain would not likely be used. D) eminent domain would likely be used because this transaction would increase cooperative surplus.
The statement "It is better to suffer a little more unemployment than a little lower price" is an example of normative economic analysis
a. True b. False Indicate whether the statement is true or false