In the model of perfect competition, the market demand curve is found by
A) a marketing analysis.
B) taking the demand curve of a "representative consumer" and expanding it by the number of consumers of the good.
C) horizontally summing the demand curves of individual consumers.
D) horizontally summing the supply curves of individual firms.
C
You might also like to view...
Suppose a firm is employing labour (L) and capital (K) such that MPK/MPL = PK/PL. If the price of labour rises, the cost -minimizing firm should:
a) employ more capital and less labour because MPK/MPL < PK/PL. b) do nothing. c) employ more labour and less capital because MPK/MPL > PK/PL. d) employ more capital and less labour because MPK/MPL > PK/PL. e) employ more labour and less capital because MPK/MPL < PK/PL.
The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. Based on the data in the table, production of fertilizer has
A) external benefits. B) external costs. C) no externalities. D) constant returns to scale.