A perfectly competitive industry's market price is found by
A) finding the point on the market demand curve where the largest number of units will be purchased.
B) locating the intersection of the market demand and market supply curves.
C) the horizontal summation of all the industry firms' individual supply curves.
D) identifying the price at which each firm realizes its largest economic profit.
Answer: B
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Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. What is Archibald's shut-down point?
A) $10.00 B) $16.67 C) $15.00 D) $12.50
Which of the following government policies would most likely result in an increase in economic growth?
A) a decrease in the life of a patent from 20 years to 15 years B) a decrease in government spending on grants issued through the National Institutes of Health C) a decrease in the interest rate at which the government provides student loans D) decreased copyright protection on music and movies